Comment Re:"Goodwill" (Score 1) 459
jesus. geeks posting about accounting!!! yikes.
do not amortize (or "depreciate" as you say) goodwill. if you are a public company, you will be shot. if you are a private, you will restate when your accountants find out, and in both cases, and you'll have to report yourself to your state accounting board and to shareholders.
statement 144 replaced 142. companies must now evaluate whether their goodwill will be recoverable in future periods.
If a company is taking an impairment charge, that means they have made the determination that intangible assets do not have future benefit (i.e. the assets do not meet the technical definition of an asset). This determination is usually made after a thurough and complex cashflow forcast has been prepared, bought off on by the auditors, and approved by managment and board of directors.
and to confirm, goodwill is simply the value SCO paid for a different company over the book value. it has nothing to do with SCO's own brand image, or anything along those lines. A company can not book goodwill on themselvs!
do not amortize (or "depreciate" as you say) goodwill. if you are a public company, you will be shot. if you are a private, you will restate when your accountants find out, and in both cases, and you'll have to report yourself to your state accounting board and to shareholders.
statement 144 replaced 142. companies must now evaluate whether their goodwill will be recoverable in future periods.
If a company is taking an impairment charge, that means they have made the determination that intangible assets do not have future benefit (i.e. the assets do not meet the technical definition of an asset). This determination is usually made after a thurough and complex cashflow forcast has been prepared, bought off on by the auditors, and approved by managment and board of directors.
and to confirm, goodwill is simply the value SCO paid for a different company over the book value. it has nothing to do with SCO's own brand image, or anything along those lines. A company can not book goodwill on themselvs!
