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Assume That in Colorado Ski Resorts Can Be Classified as "Large

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Essay

Assume that in Colorado ski resorts can be classified as "large" and "small," and that there are twelve large and fifteen small resorts.Some owners own more than one resort.Assume that there are two owners,each of whom owns two large resorts,who plan to merge.Currently,each owner's two resorts have approximately fifteen to twenty percent of the Colorado ski market.Each owner's two resorts have about thirty to thirty-five percent of the Colorado Front Range "day-skier" market (people from the Colorado Springs,Denver and Fort Collins areas who drive to a resort,ski,and drive home all in one day).Assume that Colorado resorts combined have about forty percent of the Rocky Mountain ski market,and about fifteen percent of the national ski market.Will the merger be allowed,and what are the legal principles involved?


Definitions:

Impairment Test

An examination carried out to determine if the carrying amount of an asset exceeds its recoverable amount, potentially leading to an impairment loss.

Reversal

The process of undoing or nullifying a previous accounting entry or transaction.

Impairment Loss

The difference when the recorded value of an asset or a cash-producing entity surpasses the amount it can be recovered for.

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