Ok he buys the store worth 1 million, he pays 1.5 million. So he's down 500,000. However in this they write the 500,000 down as goodwill and ADD it to his total worth? So his investment is worth 1.5 million? Or do they subtract the goodwill? If so why would the goodwill dropping to 250,000 be a bad thing if they're subtracting? I'm confused. Thanks for responding even though we're getting thumbs down.
the 500,000 in goodwill was a projection for future investment, as he didn't have success with the business and the cost of the store went down his goodwill went down by 250,000 (this is just an example)
Clear as mud! Duh! The writedown is on the left side of the balance sheet, so how is it shown on the right side? Otherwise, the balance sheet is now out of balance! What happened to the equity value? Very confusingly presented!
So he buys a toy store worth a million for 1.5 million. He's down 500K. But now the value drops and he's only down 250K? If the value were to go up to 1.6 million he'd be up 100K, but I bet the accountants would have a cute twist on that too wouldn't' they! Hurray for lies!
I'm amazed these vids are not more popular. This guy rocks!
Great Videos. What is your take on gold silver?
Thank you sir for your amazing explanation.
Great video mate, thank you!
Paddy is the best!
Thank you so much! Great explanation!
Thanks Sensei!!
whats the difference between a write-down and marking to market?
Now I need a drink!
Ok he buys the store worth 1 million, he pays 1.5 million. So he's down 500,000. However in this they write the 500,000 down as goodwill and ADD it to his total worth? So his investment is worth 1.5 million? Or do they subtract the goodwill? If so why would the goodwill dropping to 250,000 be a bad thing if they're subtracting? I'm confused. Thanks for responding even though we're getting thumbs down.
the 500,000 in goodwill was a projection for future investment, as he didn't have success with the business and the cost of the store went down his goodwill went down by 250,000 (this is just an example)
excellent!
Clear as mud! Duh! The writedown is on the left side of the balance sheet, so how is it shown on the right side? Otherwise, the balance sheet is now out of balance! What happened to the equity value? Very confusingly presented!
Pada potraznja za papirima jer se previše uvozne robe pojavilo na trzistu!?
So he buys a toy store worth a million for 1.5 million. He's down 500K. But now the value drops and he's only down 250K? If the value were to go up to 1.6 million he'd be up 100K, but I bet the accountants would have a cute twist on that too wouldn't' they! Hurray for lies!
Is the reason for the write downs is to lower the taxes?
No
good will is fake value!