Neither a certified accountant nor a certified lunatic
Quote:
Originally Posted by
Snoopy
Here is a question for the accountants on this forum. If Pizza Hut goodwill in the books is accurately valued, why was it necessary to write off $3.192m of goodwill disposed of as a result of selling off PH stores to owner operators during the year?
Does this not mean that the actual price received for those PH stores on a willing buyer, willing seller basis, meant that it was not possible to sell those stores with the value of that goodwill included? IOW, that $3.192m of goodwill on the books connected with those PH outlets being sold was really a figment of RBD management's imagination?
SNOOPY
So Note 5 says they made a loss of $1M664 selling stores with $3M192 of booked goodwill attached. (Note 8 suggests originally about $13M but written down over prior years).
The entire amount was not 'written-off' but as a result of the sales the amount of goodwill owned by the company decreased.
The buyers paid more than $2M484 for PP&E valued by RBD at $958K so the buyers were willing to pay at least $1M5 for goodwill which appears as cold-hard cash.
Other than that all I will say is:
that I have never liked RBD as an investment;
this years annual report is a lot better than the 3D (glasses supplied, but not with the e-copy) version for 2012.
Best Wishes
Paper Tiger