Acquisition of Goodwill Treatment

Goodwill does matter!  July 3, 2012 – 09:00 pm
goodwill and associated

Of the arcane accounting subjects, the treatment of goodwill and how it should be accounted for has been through more iterations than most, but on one subject most market observers are agreed.  It can generally be ignored.  Vodafone, for example, acquired vast amounts of goodwill when it bought Mannesmann in 2000 and at the last count the impairments totalled around £30 billion.  An impairment charge in the billions and  wiping out reported profits virtually every year in the past decade was casually ignored by most observers.  An even worse case is AOL’s acquisition of Time Warner (‘the worst acquisition in history’) where the impairments to date total $102 billion out of a total transaction cost of $162 billion.  But in both cases, the acquisitions were made via share-for-share exchanges, not using hard cash.  So you could conclude that it was all highly valued paper taking out other highly valued paper, and the resulting accounting charges for goodwill impairment were just that, accounting.

But it’s hard to argue that goodwill impairments don’t matter when it’s hard cash that’s been used to make the acquisition.  Which makes the $6 billion write-down announced yesterday by Microsoft all the more egregious. Yes, it’s a non-cash charge that will impact this year’s earnings, but the usual accompaniment of analyst and investor disinterest won’t be there this time.  This one matters, and it’s an admission by the Microsoft management  team that they’ve wasted billions of shareholders’ cash on a failed acquisition.  It was, of course, the very same management team that acquired Skype (which in its brief history to date has never made a profit and on my understanding of its business model, such as it is, doesn’t look like doing so in my lifetime) for an even higher sum, $8.5 billion.  Might be worth keeping an eye on the goodwill value in that one too.

Source: FinanceTalking

SanDisk SanDisk 32GB SDHC Flash Memory Card (SDSDB-032G-B35)
CE (SanDisk)
  • Cards include security feature for protection of copyrighted data
  • SD cards are fully compatible with all SD-compliant devices
  • Speed performance rating: Class 4 (based on SD 2.0 Specification)
  • Writeable label for easy identification and organization
  • High quality and reliability backed by a 5-year limited warranty

You might also like:

Above Lifes Turmoil (1 of 3)
Above Lifes Turmoil (1 of 3)
FC BLUE Podcast (uncut) episode #1
FC BLUE Podcast (uncut) episode #1
Dr. Albert Schweitzer & USAFE Goodwill Mission 221439-04
Dr. Albert Schweitzer & USAFE Goodwill Mission 221439-04

Dr. Spencer's questions

Questions regarding Morgellons that I want to answer:
What is Morgellons Disease?
How is this known?
What are the symptoms?
What are the physical findings?
How long has it existed?
What is the geographical distribution?
Is it contagious? What is the evidence?
How is it contracted?
Where is it made and how is this known?
What Universitie...br /> What forms of DNA are associated?
What is the significance of the colored fibers?
What electrical phenomena/EMF are associated?
What nano computers are present?
What is the current treatment and what are the results?
What part does Lyme play?
What are the arthropod like entities that infest people?
Do we know what produces the cognitive impairment?

Patents expire after 5years

The company has to find a new use or formula for the drug and they can re-apply for another 5yrs.
Some companies IMO abuse this. I take Imitrex which has been on the market about 15yrs. But it still costs $27 a pill. Because they made an injectable version, a 100mg pill, and then re-formulated the product fom sumatriptan to sumatriptan succinate, all so no one can make a generic.
Yo...ere financial burder for others.
I'm not sure what, but something needs to change so companines can offer medicines at lower prices or something, if they will not allow their patent to expire. Or have more insurance plans cover brand name drugs without making the doctor & patient jump through hoops to get special approval, maybe.
Just my generic vs. brand name rant for the night :-)

White History - February 14


1946 ENIAC, the world's first electronic digital computer, was officially unveiled at the Moore School of Electrical Engineering at the University of Pennsylvania. ENIAC is short for Electronic Numerical Integrator and Calculator, and was conceived and designed by John Mauchly and J. Presper Eckert of the University of Pennsylvania.

1876 American inventors Elisha Gray and Alexander Graham Bell each filed patents for their version of a telephone.

After Patent on Genes Is Invalidated



ANDREW POLLACK
Published: March 30, 2010
"Many biotechnology stocks fell on Tuesday as investors struggled to understand the impact of a ruling that threw out parts of two gene patents and called into question thousands more."
"Stock market losses were muted, with two major indexes that track the shares of the industry falling by less than 1 percent each."
... patents held by Myriad Genetics covering two breast cancer genes, known as BRCA1 and BRCA2, were invalid."
"Myriad analyzes those genes in an expensive test that predicts whether a woman is at a high risk of getting breast or ovarian cancer."
"The plaintiffs in the case, which included various medical groups, said the patents on DNA were illegal and impeded access to the testing."

So anyway, the USA's intellectual property keeps

Getting siphoned off by china stealing trade secrets, patents, info. about how to build and maintain complex computer and military stuff (notice how suddenly they magically "pulled themselves into" the manned space scene?) via china's extensive cadre of "professional hackers."
according to america's "counter terrorism czar," richard clarke, he says that "every major company in america has ...orses, all ready to be activated on command, so we won't know what hit us. or what's already hitting us.
"my greatest fear," clarke says, is that rather than having a cyver pearl harbor event, we will instead have this death of a thousand cuts. where we lose our competitiveness by having all of our research and development stolen by the chinese."
(read this in a smithsonian article.)

IPO Amicus Brief Argues for Patent Eligibility of Myriad's Isolated DNA Claims …  — Patent Docs
Indeed, the Court cited Thomas Jefferson for the proposition that the patent laws should be broadly construed with regard to what is patent eligible, referencing the first Patent Act of 1793 and Jefferson's exhortation that "ingenuity should receive a …

SanDisk 8GB SD High Capacity Card (SDSDB-008G-B35)
CE (SanDisk)
  • Cards include security feature for protection of copyrighted data
  • SD cards are fully compatible with all SD-compliant devices
  • Speed performance rating: Class 4 (based on SD 2.0 Specification)
  • Writeable label for easy identification and organization
  • High quality and reliability backed by a 5-year limited warranty
The Type 2 Perspective - Brand Strategy Post-Merger
The Type 2 Perspective - Brand Strategy Post-Merger
Speech by Dylan Anthony son of Lawrence Anthony at UKZNs Grad Ceremony
Speech by Dylan Anthony son of Lawrence Anthony at UKZNs Grad Ceremony
City Council Meeting - Jan. 14, 2013
City Council Meeting - Jan. 14, 2013
Paper Thin Leaf Indoor HDTV Antenna - Made in the USA!
Home Theater (Mohu)
  • Paper thin - hang behind any picture or bookcase near your tv
  • High quality construction - made in the USA!
  • High performance design - outperforms all major brands
  • Omnidirectional reception, no adjustments needed
SanDisk Cruzer 32GB USB Flash SDCZ36-032G-B35,Black
CE (SanDisk)
  • Take it all with you on reliable SanDisk USB flash drives
  • Transfer with confidence when moving images and other files from PC to PC or other CE devices
  • Available in 4GB, 8GB,16GB and 32GB capacities
  • Ideal for video-the easy way to store, share and playyour favorite video files.
SanDisk SanDisk microSDHC 32GB Flash Memory Card (Retail Packaging) SDSDQM-032G-B35,Black
Personal Computer (SanDisk)
  • Available capacities: 2 GB*, 4 GB, 8 GB, 16 GB, and 32 GB
  • Seamless speed and performance with microSD/SDHC compatible devices
  • Class 4 Speed performance rating (based on SD 2.0 Specification)
  • Tested under the most extreme conditions
  • 5-Year limited warranty
Important Facts in Catering Business
Important Facts in Catering Business
Inside Google+: Bradley Horowitz talks with Tim OReilly
Inside Google+: Bradley Horowitz talks with Tim OReilly
Jordan 2011-USA Foreign Policy Priorities from John McCain
Jordan 2011-USA Foreign Policy Priorities from John McCain

Related posts:

  1. Acquisition of patent
  2. Acquisition of goodwill cash flows
  3. Acquisition of Goodwill Cash Flow Statement