itsa figures for oct to dec 2011, page-24

"When accruals of this nature get so high, estimates play a very big role in reported results."

To me it sounds like they must use an in house equation based on giving goodwill a % number between say 50% and 90% based on the clients probablility of paying it back, and multiplying it by receivables then using the NPV calculation to determine present value of that money.


lets say chance of payback is estimated at 80% and the loan book is $5000

then (80% * $5000) =$4000 accrual,

then use a NPV calucation with variables of discount rate, and loan length to determine present value of that loan
How does that sound?