Boardroom

[camelking]

woah. the intangible asset or goodwill increased tremedously from FY2011 to FY2010 due to purchase of new subsidaries. However I find it strange when the payout of cash was 20M but the goodwill increased by 40m. Anyone can share some light on the goodwill accounting?

The accompanying note to the cashflow statement only explains the increase of around 20m..but the goodwill has increased by 40m.
The annual report should have more information on the movement of goodwill.

For the case of 20m cash insulting in an increase of goodwill of 40m, it is possible (No, I am not saying this is the case here). May be the company's fair valued balance sheet is negative say -20m.
So, u could have a goodwill of 40m if u pay 20m cash
Another possibility is cash + shares acquisition which u won't see the impact in cashflow...you will see it in statement of equity changes which is NOT the case here too.
The combination is many....it could be shares,balances receivables and etc..
Hope it helps...