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Re: Bramabill post# 4549

Friday, 04/30/2010 9:35:43 PM

Friday, April 30, 2010 9:35:43 PM

Post# of 40561
In general, If the nominal value of preferred stock issued in consideration of an acquisition equals say, $20,000,000 and the liabilities that are consolidated equal $11,000,000, then the increase in equity is $9,000,000.

I am not saying that those are the numbers in their deal, but this is accounting according to GAAP.

This is the reason there are @ $1,900,000 in goodwill on the books of A**T. The assets acquired were less than the purchase price. The difference is goodwill. This is not a bad thing, goodwill is an asset. The majority of CocaCola's assets are goodwill.