Glossary entry (derived from question below)
English term or phrase:
goodwill impairment charge
German translation:
Sonderabschreibung auf den Firmenwert
Added to glossary by
Steffen Pollex (X)
Mar 31, 2002 10:45
22 yrs ago
5 viewers *
English term
goodwill impairment charge
English to German
Bus/Financial
Accounting
Given the EUR 475m goodwill impairment charge taken in last year’s accounts, the trade will not give rise to any further capital loss in the current fiscal year.
Proposed translations
(German)
5 +5 | Wegen | Steffen Pollex (X) |
2 | die Unkosten der Verminderung des Goodwill | Eva Blanar |
Change log
Mar 12, 2008 09:46: Steffen Walter changed "Level" from "Non-PRO" to "PRO"
Mar 12, 2008 09:46: Steffen Walter changed "Field (specific)" from "(none)" to "Accounting"
Proposed translations
+5
8 mins
Selected
Wegen
Wegen der im Vorjahr vorgenommenen Abschreibungen auf den Firmenwert in Höhe von EUR 475 Mio wird das Geschäft nicht zu einem weiteren Eigenkapitalverzehr/einerweiteren Eigenkapitalminderung im laufenden Geschäftsjahr führen.
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Note added at 2002-03-31 11:15:03 (GMT)
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Sorry, I was imprecise: impairment charge is \"Sonderabschreibung\" vs. usual depreciation or amortization. It means that the good depreciated lost value more rapidly than expected due to unexpected circumstances, market changes etc.
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Note added at 2002-03-31 11:15:03 (GMT)
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Sorry, I was imprecise: impairment charge is \"Sonderabschreibung\" vs. usual depreciation or amortization. It means that the good depreciated lost value more rapidly than expected due to unexpected circumstances, market changes etc.
Reference:
4 KudoZ points awarded for this answer.
6 hrs
die Unkosten der Verminderung des Goodwill
In my understanding, there was a reduction (a write-off) in the goodwill in previous year's account, but this probably is not an "extra amortisation charge" on the goodwill. More likely is a situation that say, with an acquisition, some goodwill was created (=the price paid was higher than the net asset value of the target company and this appears in the balance sheet as "goodwill"). After that, say, half of that company was sold and, as a consequence, the goodwill shall be reduced.
Also, it might be connected with a change in the respective regulation:
"Under the FASB regulations (Financial Accounting Statement 141, Business Combinations, and FAS 142, Goodwill and Other Intangible Assets), companies are required to stop amortizing goodwill at the start of their fiscal year and perform instead a complex impairment test. Challenges include identifying reporting units and determining their fair value, as well as valuing certain intangibles separate from goodwill."
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Note added at 2002-03-31 16:51:34 (GMT)
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I think the message of this sentence is that the negative effect already appeared in the financial accounts for the previous year and no further bad news shall be expected in the current business year, at least, not in this line.
Also, it might be connected with a change in the respective regulation:
"Under the FASB regulations (Financial Accounting Statement 141, Business Combinations, and FAS 142, Goodwill and Other Intangible Assets), companies are required to stop amortizing goodwill at the start of their fiscal year and perform instead a complex impairment test. Challenges include identifying reporting units and determining their fair value, as well as valuing certain intangibles separate from goodwill."
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Note added at 2002-03-31 16:51:34 (GMT)
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I think the message of this sentence is that the negative effect already appeared in the financial accounts for the previous year and no further bad news shall be expected in the current business year, at least, not in this line.
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