All SGH questions - put here (financials ONLY), page-170

Hey Copter,

Goodwill is an asset that has the potential to generate cash in the future, when a business list a certain type of goodwill, it is the valuation of the company that it had purchased that is cannot yet be materialize - I've explain this in another post somewhere. A write- down in goodwill is suggestive about the potential cash flow that the business can earn but it does not suggest the cash flow correction itself. So you are telling me that Coca Cola were to write-down B$1.000 goodwill from its B$12.100 goodwill, it will lose B$1.000, cash that year. No, because that would be illogical, cash flow is a component to value the business, goodwill is the total value of discounted cash flow over an eternity of a purchased business, two very important word when considering aspect of cash flow/earnings.

Robert