Sat January 19 2013
CAT experienced a writedown of goodwill regarding an investment in a Chinese Company.
Specifically this is a non cash goodwill writedown. As an accounting student do you know what that is? This is why we study accounting. Notice that CAT Board members admitted this should have received more scrutiny, but when it did CAT did not heistate to take action. This is an example of good corporate governance. If you do not know what a non cash good will writedown means, look it up now, don't wait for me to explain it in class.
Get out front ahead of the rest of the class, that is the point of this blog, to relate what we study in class to the real world.
Professor Elam 
Leave a comment