Great example of allocation of purchase price.
Take a look at this Financial Times article which explores how General Electric’s ‘$23bn writedown is a case of goodwill gone bad’. Initial goodwill recognized increased by $3.6bn in the final adjustment and the Alsthom acquisition also included redeemable noncontrolling interest of $2.9bn which represents an additional financial liability to General Electric. Purchase price $10.1bn, final goodwill recognized $17.3bn. Two years later impairment of entire goodwill.
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