Where is a change in goodwill reflected on the statement of cash flows?

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naturallight

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Where is a change in goodwill reflected on the statement of cash flows?
CFO? CFI?
thanks!
 
Hmm… are you recording an initial goodwill entry from an acquisition?
 
If its the indirect method (working backwards from NI) it falls under CFO. Direct method it shouldn’t show up.
 
naturallight Wrote:
——————————————————-
> Where is a change in goodwill reflected on the
> statement of cash flows?
>
> CFO? CFI?
>
> thanks!
Firstly, any movement is non-cash, therefore, you will only see it on the cash flow statement if your cash flow statement starts with net income
Secondly
are you talking about a true-up of goodwill resulting from purchase accounting? It wouldn’t hit you cash flow statement because it wouldn’t hit your p&l
are you talking about impairment. should be added back I would think in the operations section
 
Yeah, I presume it’s an impairment since it’s going down. CFO it is!
thanks!
 
Wait, if you are talking a write down here that would a non-cash transaction and would impact the income statement but not your cash flow statement.
 
When looking at data from an vendor it will be forced into CFO as they have nowhere else to report which will distort the CFO. Typically when a company has a large write off of goodwill it is reported in none of the primary sections but as an adjustment typically labelled something like Other Cash Flows.
 
naturallight Wrote:
——————————————————-
> Where is a change in goodwill reflected on the
> statement of cash flows?
>
> CFO? CFI?
>
> thanks!
its a non cash loss, its not on the cf only on bs and is
 
it impacts cfo - think about what you’re saying - if it affects net income, then you have to add it back in CFO to come to your true cash position.
 
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