Warning: include_once(/home/tabrez/www/talk/mtrefsearch.php) [function.include-once]: failed to open stream: No such file or directory in /home/tabrezsyed/mandalivia.com/talk/archives/000266.php on line 118
Warning: include_once() [function.include]: Failed opening '/home/tabrez/www/talk/mtrefsearch.php' for inclusion (include_path='.:/usr/local/lib/php:/usr/local/php5/lib/pear') in /home/tabrezsyed/mandalivia.com/talk/archives/000266.php on line 118
October 04, 2002
I-Banking
Interesting blog entry on Investment banking. The summary:
When companies merge they have two options when managing the accounting. Straightforward purchasing (involving transfer of assets to the acquirer's balance sheet) or pooling of assets. In the former case the excess value paid over book value is treated as goodwill.
The pooling option has been eliminated. Now goodwill no longer has to be depreciated over 40 years. Instead its subject to impairment every year based on valuation. (Remember AOL Time Warner's whopping loss this past year due to impairment of goodwill!)
Posted at October 4, 2002 11:14 AM