Forum Archive Index - August 2000

[Mike Hudson <MHudson@placemakers.co.nz>]

Brian wrote

" The Goodwill pay-out is a once off. Future bottom line figures must be
better. If in fact that high expense had not been there the overall result
would have been extraordinary. This appears to have been what they were
trying to put over, but as I have said it was stupid because they couldn't
(and didn't) get away with it."

Brian, are you sure that this is a one off? My understanding of the
treatment of goodwill is that it is to be amortised over the period that the
benefit of the goodwill is expected to be received but not exceeding 20( ?)
years. Most companies write off goodwill over the maximum time at it is
positive for both profit and asset backing.

I may be wrong (again!) but it would surprise me if this was the last of the
goodwill. 




Mike  



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