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Cash Flows - Impairment of goodwill

Former userFormer user5y ago

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stephenwidbergstephenwidbergTutor5y ago#1
Impairment (like depreciation) is not a cash flow - it has been deducted in calculating PBT. So, like depreciation, it must be added back in order to convert profits into cash flows.
stephenwidbergstephenwidbergTutor5y ago#2
1. It is NOT a cash flow. 2. It is a CORRECTION - because the profit used in operating cash flows includes non-cash items. Exactly the same logic as depreciation.
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