I appreciate my thinking me be off a bit as I have been up and down all night going through the Ann etc (including updating my Ignore list).
I know we all know the issue is the impairment write-down. This figure is a value decided by CFO etc (and probably bank reps) I think.
The question is how do they come up with this figure?
We all knew cash flows on UK acquisitions was going to be poor but to have an impairment of INTANGIBLE assets of $876M seems extremely high when the ownership is less than 12 months.
I have heaps more queries re the figures but sleep is more important at the moment.
"Impairment is a permanent decline in the value of an asset. This situation exists when the cash flows or other benefits generated by an asset decline, as determined through a periodic assessment. If there is impairment, then the difference between the fair value of the asset and its carrying amount is written off.
Depending on the situation, an impairment can cause a major decline in the book value of a business."
SGH Price at posting:
58.0¢ Sentiment: Hold Disclosure: Held
