ARO Liquidation Inc. (fka AROPQ)

[eddy2]

Penalty cost to good will if the target date is not met. This is not an interest cost but often a liability cost represented by issuing restricted shares to the buyer who put down the pre payment for goods to be delivered.

Because equity is issued on the bases of goodwill the company can cover this penalty awarded to the purchaser by the diluting the common share holder.

Any merchandise or service liability can also be done by this method of readjustment to the original goodwill.

Goodwill does not always come in a direct payment from a customer and is often financed by the company for the customer.

A customer comes in looking for a service or product and agrees to the financing term issued by the bank working close with there client the company in question. These interest charges are often absorbed by the customer or tacked on to the goodwill as a reverse charge further noted under your liability charges as payable accounts.


This impatement charge or liability charge is amortized over a period of time. How this works is let's say there was a forward split of shares, and you have all seen them where there is a two for four forward split or maybe a reverse split four for two and for the oddest reason your share distribution your expecting doesn't come through as indication of the anounsment indicated it would.

What happened. Well the goodwill charge has been adjusted and you will take notice that there has been a significant drop in the outstanding share charges that relates back to the goodwill.

It's important to monitor the charges and future adjustments as well any other tacked on charges to the goodwill. The imparement charge can turn the goodwill into a negative goodwill if the retained earnings turn negative and the outstanding share charge is greater then your capital surplus.

This is the first indication of a company that has fallen into a receivership or chapter 11 situation. Often investors will be have this confused that opens the door for scrupulous investors like our friend Sly to come and take advantage of the uneducated investor.

Now don't take my word on this. Do your own DD and study international accounting practices that regulates today's market place in our global economy.

Outstanding shares is not a asset like many think but a liability charge against previous goodwill that all issued shares have been sold and valued. These charges are allowed to build to a period so that they can be delt with.

There not of the balance sheet as many scrupulous individuals may tout, there in your face and don't be miss lead to there importance to your investment strategy and future return on your investment.

Because it's in your face there is no requirement for a filing under sec rules to announce a chapter 11. A company wil often try to trade out of the situation they have fallen into if they can keep up the volume and receive positive results.

Stranger things have happened. Granted now with the Internet and folks becoming more educated this is not always the case any longer.