Professor Elam

Accounting & Investing Info for San Antonio A & M

Rig Takes $ 2.8 B Writedown

Weekend Nov 8 2014

Transocean RIG delayed reporting earngs. RIG took a $$2.8 B write down.

This was a combination of a write down of goodwill on acquisitions $1.97 B

And a writedown on the equipment resulting from lower lease rates $788 Million.

I recently posted several of my articles on the declining oil price. Here is a real world result of that.

We study write downs in ACCT 3311 regarding PPE. Why did RIG take the impariment charge on goodwill?

Because the cash flow analysis indicated the value of the goodwill no longer existed.