Write-downs

[diabloreventonf22]

love it when he says "needing a drink" and throws the pen

[tbscrazy12]

Its called impairment. Under GAAP once the goodwill is impaired a company cannot recover the impairment loss. Under IFRS you can recover the impairment loss. BTW goodwill can never be internally created.

[FA9082]

Now I need a drink!

[fukinh0t]

Market value is the price at which is selling at that time. So if it was sold at 1.5 million then that should be the market price. Goodwill should only be recorded when you buy an operating company and measures intangible assets like employess(numan capital), that can't be measured. If he is just buying the building, all cost associated with getting the building to its intended use should be included in the building account on the books.

[morgandrim]

About 1/3 the way through this vid. I thought to myself, is it me, or what about "Writeups ?"

Thank God the fella mentioned them. I thought I was perhaps too dim for all this stuff.

[fatalegg]

thanks. i like the end "needing a drink" throws pen haha

[Blackasknight]

Another great video.BTW (and correct me if im wrong) but goodwill is neither added or subtracted from the balance sheet total of the store. Goodwill is a separate account under assets...basically serving one purpose, and that is to provide for a place to record the extra $500,000 that can not be recorded with the value of the store.

[Somuchclass]

From what I read in my accounting textbook, when you buy asset/s you record them at market value, anything extra is goodwill. So in the example he would have 2 assets: the building 2 mill and goodwill 0.5 mill. If you writedown goodwill you lower the account goodwill.

[johnyada]

Great Videos. What is your take on gold silver?

[Tamarinduuuu]

Great video once again, thanks a lot.

[elpresidio]

Paddy is the best!

[koeppe25]

I'm amazed these vids are not more popular. This guy rocks!

[Calliber50]

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!

[Tamarinduuuu]

lol no. When he buys the store for 1.5million he is down 500k, yes. But if in the end of the year the store is worth the 1.5mill that he expected it to be, he wouldn't have lost a penny. Since the goodwill dropped to 250k, even with the store's value going up by that amount, he will be at a 250k loss by the end of the year. The value drop didn't help him at all.

[Calliber50]

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.

[BabyBacon]

Remember that goodwill is only a estimated value, that means that even if the store is going up 500k at the end of the year. The estimated earnings for the future may be a lot lower. Lets say 250k. Thats mean its been written down 250k even thou you are up 500k as you estimated.

[orionmachine]

Keep em coming man! Great job.

[iiiiiieeeeee]

You're doing what governments and public service broadcasters are failing to do!

[HellaRandomVideos]

MORE!!!

I LOVE YOUR VIDEOS!!!

this was perticularly very interesting since i am stuying accounting. Go Gauchos!

[cuff1944]

Great video, thanks