Monday, April 28, 2008

'Assembled workforce is not recognised as a separate intangible, but is considered as part of goodwill.'

Dealing with goodwill impairment post-deals

Did you know that the Jaguar-Land Rover mega deal struck by Tata Motors for a princely sum of $2.3 billion could be valued much less come 2009? Occurrences such as these are a possibility, says Ms C. G. Srividya, Partner (Valuation Services), Grant Thornton. “It is necessary to assess and account for the acquired entity, its assets and liabilities acquired not only at the time of acquisition, but also subsequently every year to ensure that the value originally accounted for has not deteriorated,” notes Ms Srividya in an exclusive e-mail interaction with Business Line.

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