RE: Question about the RNS5 Apr 2019 21:14
Michael
I did try to explain below.
The auditors are required to test to see if any impairment is required as to fixed assets , intangible assets etc to ensure that the value on the BS can be supported.
LB said that customer numbers had declined in the period to 31 Jan - so the carrying value of goodwill - needed to be reduced.
you will find goodwill on many Balance sheets - and some larger companies may wish to write it off over a period of years.
The effect of the write back is to claw back the dividend that would have been paid or part of it.