China Merchants Holdings Pacific

http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

3Q results 5 Nov...

Always on a Thursday as usual.
Sorry if this is a noob question, Any idea how negative goodwill are calculated in financial report?
Q3 will only see some days of yp contribution/loss.
Hope they provide a glimpse of gx and gy as well, but I doubt so.

(24-10-2015, 04:13 PM)Jack31 Wrote: Always on a Thursday as usual.
Sorry if this is a noob question, Any idea how negative goodwill are calculated in financial report?
Q3 will only see some days of yp contribution/loss.
Hope they provide a glimpse of gx and gy as well, but I doubt so.

Nobody to help him up on a basic question?

Goodwill = acquired price - booked value. Goodwill is booked as asset, to have a balanced sheet, after the acquired asset booked valued is consolidated.

Hope it helps to answer the question. 

Thanks CF, I know the meaning. was just wondering does it count towards earnings (eps) at the end of the FY report or it just add in to the NTA.

(25-10-2015, 12:09 AM)Jack31 Wrote: Thanks CF, I know the meaning. was just wondering does it count towards earnings (eps) at the end of the FY report or it just add in to the NTA.

Negative goodwill is booked into the P&L statement. Its like 'buying at a discount'. If you buy something valued at $100 for $70, you get to book in negative goodwill of $30. This is a 'profit' since your own balance sheet will account it as $100 despite cash out-flow of $70.

The recent M&A do carry substantial negative goodwill. Though it has no impact on cash-flow.

(Vested)

Thanks Nick, Very clear now!

(25-10-2015, 01:20 AM)Nick Wrote:

(25-10-2015, 12:09 AM)Jack31 Wrote: Thanks CF, I know the meaning. was just wondering does it count towards earnings (eps) at the end of the FY report or it just add in to the NTA.

Negative goodwill is booked into the P&L statement. Its like 'buying at a discount'. If you buy something valued at $100 for $70, you get to book in negative goodwill of $30. This is a 'profit' since your own balance sheet will account it as $100 despite cash out-flow of $70.

The recent M&A do carry substantial negative goodwill. Though it has no impact on cash-flow.

(Vested)

Nothing much to add on Nick excellence answer, but just to highlight another name of negative goodwill, is bargain purchase.

http://www.investopedia.com/terms/b/barg...rchase.asp

The CEO of Olam is a believer of negative goodwill, especially its alternative name.

negative goodwill is an accounting term and has been (expectedly) used very thoroughly by the CEO/CFOs in the corporate world. Unless it is a distressed seller, who in the right frame of mind sells below nav? there are many many reasons for selling below nav but i am pretty sure that when a major shareholder sells an asset at below nav in a RPT (reit or something), the phds paid by the major shareholder to finance engineer the deal has to be worthed the money.

Seems like the red carpet is being rolled out for President Xi's upcoming visit to the lion city...

97.5/98

Vested
Core 
GG

(26-10-2015, 11:53 AM)greengiraffe Wrote: Seems like the red carpet is being rolled out for President Xi's upcoming visit to the lion city...

97.5/98

Vested
Core 
GG

I thought it is due to the reduction of interest rate, but since CMPH already has "low" interest rate, not sure if the benefits is significant