Ann: Half Year Accounts, page-28

You are right in that goodwill is just a balancing figure.

I also don't give a cr#p that an amount of goodwill has been written off as such.......the point I am making is that the fact it was that high in the first place. I have asked ASIC to consider whether the statements made to the market at the time in relation to the so called forecast revenues of RWL caused the "balancing figure" to be inflated in the first place.

The fact that nearly the entire $58 million has been written off less than a year the after the "merger" in my opinion is strong indication that may have been based on a false premise in the first place (othere are entitled to their own opinions which may be different from mine!!)

The following layman's definition of goodwill from Investopedia might be helpful to understand my point

What is 'Goodwill Impairment'
Goodwill impairment is a charge that companies record when goodwill's carrying value on financial statements exceeds its fair value. In accounting, goodwill is recorded after a company acquires assets and liabilities, and pays a price in excess of their identifiable value. Goodwill impairment arises when there is deterioration in the capabilities of acquired assets to generate cash flows, and the fair value of the goodwill dips below its book value.

So what management is saying is that their has been (a very material and significant) decline in the capabilities of the acquired asset (namely RWL) to generate cash flows. If others don't consider this concerning they are of course entitled to their opinion as I am only providing my view of things.

My question for ASIC is whether the claimed cababilty of RWL to generate the forecast cash flows that they touted to the market actually existed in the first place for the amounts they claimed and in the time frames they claimed.

I also agree that the key to this company success is building sales and capability but does not excuse or exonerate management from the question as to whether misrepresentations were made to the market in the lead up to the "merger".

I reiterate that I have my opinions which is why I have asked the question of ASIC.