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goodwill impairment charge

German translation: Sonderabschreibung auf den Firmenwert

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
English term or phrase:goodwill impairment charge
German translation:Sonderabschreibung auf den Firmenwert
Entered by: Steffen Pollex
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10:45 Mar 31, 2002
English to German translations [PRO]
Bus/Financial - Accounting
English term or phrase: goodwill impairment charge
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.
Angela
Wegen
Explanation:
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.
Selected response from:

Steffen Pollex
Local time: 01:43
Grading comment
4 KudoZ points were awarded for this answer

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Summary of answers provided
5 +5WegenSteffen Pollex
2die Unkosten der Verminderung des Goodwill
Eva Blanar


  

Answers


8 mins   confidence: Answerer confidence 5/5 peer agreement (net): +5
Wegen


Explanation:
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.




--------------------------------------------------
Note added at 2002-03-31 11:15:03 (GMT)
--------------------------------------------------

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.


    auditor
Steffen Pollex
Local time: 01:43
Specializes in field
Native speaker of: Native in GermanGerman, Native in RussianRussian
PRO pts in category: 21

Peer comments on this answer (and responses from the answerer)
agree  Rod Darby
12 mins
  -> Thank you!

agree  Geneviève von Levetzow
1 hr

agree  Sandra Schlatter
2 hrs

agree  Tabea Petersen
3 hrs

agree  ingot
6 hrs
Login to enter a peer comment (or grade)

6 hrs   confidence: Answerer confidence 2/5Answerer confidence 2/5
die Unkosten der Verminderung des Goodwill


Explanation:
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.


    Reference: http://www.cfo.com/specialreport/0,5487,121%7C5,00.html
Eva Blanar
Hungary
Local time: 01:43
Specializes in field
Native speaker of: Hungarian
PRO pts in category: 12
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Changes made by editors
Mar 12, 2008 - Changes made by Steffen Walter:
Field (specific)(none) » Accounting
Mar 12, 2008 - Changes made by Steffen Walter:
LevelNon-PRO » PRO


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