I just wanted to make a comment on a previous post which stated...

I just wanted to make a comment on a previous post which stated that goodwill write down is an auditors adjustment and therefore not something PBG management should be held accountable for. This is not true, PBG are required to provide support to the auditors for the carrying value of intangible assets, this is normally done via a discounted cash flow model using approximately 5 years of cash flow forecasts with a terminal value calculated (this is then reviewed by the auditors). Therefore one can assume that what was paid for the written down assets was in excess of what their perceived recoverable amounts are today either due to under performance or over payment when purchased. Both which management should be responsible for.