New Focus, Inc. (NUFO) Message Board

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Technology Stocks : New Focus, Inc. (NUFO)

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To: pat mudge who wrote (198)	1/31/2001 11:03:17 AM
From: EdR	Read Replies (1) of 475

Pat, As I remember from my Acct 101 days, Goodwill is the difference between what is paid for an asset like a company and the actual book value of that asset. If Company A buys Company B for $1 mil and the actual book value(difference between assets and liabilities) of Company B is $800k then there is a $200k accounting entry made on the asset side of the balance sheet and it's called GoodWill. This has had to be amortized over a period of time in the past. I think recent acctg rules have changed that requirement... all IMHO... Ed...

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