/vt/ - Virtual Youtubers

>>10932234
>>10932262
It's actually a somewhat simple process in how they come up with those numbers!
>Goodwill is considered to have an indefinite life and is carried at cost. Acquired trade names are assessed as indefinite lived assets if there are no foreseeable limits on the periods of time over which they are expected to contribute cash flows. Goodwill and indefinite-lived assets are not amortized, but are subject to an annual impairment test, as well as between annual tests when events or circumstances indicate that the carrying value may not be recoverable. We perform our annual impairment testing at December 31.
Or in layman terms: "Goodwill" is the value of their brands and overall brand name, turned into an actual, tangable asset on the balance books to represent some form of "asset" that Activision-Blizzard believes it can somehow liquidate if need be.
>Our annual goodwill impairment test is performed at the reporting unit level. We generally test goodwill for possible impairment first by performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If a qualitative assessment is not used, or if the qualitative assessment is not conclusive, a quantitative impairment test is performed. If a quantitative test is performed, we determine the fair value of the related reporting unit and compare this value to the recorded net assets of the reporting unit, including goodwill. The fair value of our reporting units is determined using an income approach based on discounted cash flow models. In the event the recorded net assets of the reporting unit exceed the estimated fair value of such assets, an impairment charge is recorded for this amount under revised accounting guidance effective for the year ended December 31, 2020, and future periods. Based on our annual impairment assessment, no impairments of goodwill were identified for the years ended December 31, 2020, 2019, and 2018.
Or in layman's terms: Acti-Bliz audited themselves and found that, for the last three years, there has not been a single drop in brand value whatsoever! Here is the value they assign to the brand names of each of their company's asset portfolios.
Oh, and the funniest thing, that's in their 8-K Quarterly report, filed around August 2021?
>we are party to routine claims, suits, investigations, audits, and other proceedings arising from the ordinary course of business, including... labor and employment matters..."
>In the opinion of management, such routine claims and lawsuits will not be significant, and we do not expect them to have a material adverse effect on our business...
Essentially, they claimed RIGHT BEFORE the big lawsuits went down that they had absolutely no worry of any big lawsuits happening. They're currently being sued by investors for outright lying to them about the state of their company in these reports.