The issue of Goodwill

Article One: The issue of Goodwill
25th May 2003 by ZHOU Zhihui
European Companies Make Big Write-Offs of Goodwill
Wall Street Journal; New York, N.Y.; Feb 19, 2002; By Silvia Ascarelli

Goodwill is the difference between an acquisition price and the acquired firm’s net worth. Massive write-off among European companies for goodwill they paid for acquisitions a few years ago did affect European share markets. A particularly case was Vodafone, the world’s largest mobile-phone company. Anticipated goodwill write-downs are expected to shift per-share earnings by 29 cents and into the red for both 2001 and 2002, according to a consensus of analyst forecasts compiled by IBES. George...