Write-downs 

I'm amazed these vids are not more popular. This guy rocks!

Great Videos. What is your take on gold silver?

Thanks Sensei!!

Great video mate, thank you!

Paddy is the best!

Thank you so much! Great explanation!

Ok he buys the store worth 1 million, he pays 1.5 million. So he's down 500,000. However in this they write the 500,000 down as goodwill and ADD it to his total worth? So his investment is worth 1.5 million? Or do they subtract the goodwill? If so why would the goodwill dropping to 250,000 be a bad thing if they're subtracting? I'm confused. Thanks for responding even though we're getting thumbs down.

Thank you sir for your amazing explanation.

Now I need a drink!

excellent!

whats the difference between a write-down and marking to market?

Remember that goodwill is only a estimated value, that means that even if the store is going up 500k at the end of the year. The estimated earnings for the future may be a lot lower. Lets say 250k. Thats mean its been written down 250k even thou you are up 500k as you estimated.

Clear as mud! Duh! The writedown is on the left side of the balance sheet, so how is it shown on the right side? Otherwise, the balance sheet is now out of balance! What happened to the equity value? Very confusingly presented!

Pada potraznja za papirima jer se previše uvozne robe pojavilo na trzistu!?

So he buys a toy store worth a million for 1.5 million. He's down 500K. But now the value drops and he's only down 250K? If the value were to go up to 1.6 million he'd be up 100K, but I bet the accountants would have a cute twist on that too wouldn't' they! Hurray for lies!

Is the reason for the write downs is to lower the taxes?

good will is fake value!