Bearing Fruits- More Lemon?, page-82

Goodwill cannot be written back.

It is really a moot point anyway. As a non-cash item it only impacts balance sheet metrics. Theoretically goodwill could be written down (as it has) for justifiable reasons known at that time but actually produce the cash flows expected in years to come.

The net effect would be beneficial. We now start from a low base. If the business does actually produce the envisage cash flows prior to impairment due to no change to small claims then we will be in a far stronger position - tangible assets greater ratio to intangibles and very strong return in assets. Debt paid as per schedule and a cash cow producing good dividends (assuming a period of consolidation with only small portion of retained earnings for marginal growth).