In 2011, JW Medical Systems Ltd. was acquired by a biotechnology company, Biosensors International Group (BIG) that consequently, dramatically enhanced the company’s goodwill and other intangible assets. The balance sheets of BIG was contemplated by an expert, Matthew Tay, with an equity research company in Singapore, MMB Ltd., on 2 July 2012. In contrast to the year before result of 4%, now the 62% 0f the company’s total assets are comprised of goodwill and other intangible assets. Tay was aware that the primary reason of this significant incline was the acquiring of JW Medical Systems a year before. He questioned about why the goodwill and other intangible assets are presented, by what means they were represented and in what ways they could be translated. The case describes the financial standing of BIG before the acquisition and determines the acquisition transaction, and examine the reported valuation and the impairment testing of goodwill and other intangible assets in the BIG’s financial statements.
Related Case Solutions & Analyses:
Percy Memorial Hospital
ALAC International
Creating a Culture of Empowerment and Accountability at St. Martin de Porres High School (B)
Elizabeth Jacobs: Price-Earnings Ratios and Employee Stock Option Grants
Kanebo Ltd. (B)
MCI-WorldCom Combination (A)
LIFO or FIFO That Is the Question
Sum of the Parts Valuation: Digital Realty Trust
Dog Concierges, LLC: Transaction Analysis and Statement of Cash Flows Preparation
SGX Bids for ASX
