Biosensors International Group, a biotechnology entity listed on Singapore Exchange, purchased JW Medical Systems Ltd in year 2011. This led to a substantial increase in the reported goodwill and other intangible assets. On 2 July 2012, Matthew Tay, an analyst with MMB Ltd (an equity research business in Singapore), sat staring at the balance sheets of BIG. The sum total of goodwill and intangible assets made up 62% of overall assets compared to 4% the year before.
He knew that the enormous increase resulted from the acquisition in 2011. He wondered how they must be interpreted, how they were accounted for and what these intangible assets and goodwill symbolized. This case study deals with the valuation and also intangibles (including goodwill)'s damage testing reported in the financial statements of BIG, and describes the acquisition trade and BIG's post -acquisition financial position.
PUBLICATION DATE: July 07, 2014 PRODUCT #: NTU053-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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