Why write down an asset's value on a balance sheet as less than it really is?

*SwEeTiE*

New member
Why do companies do that? For instance why did Barclays sell BGI for a price £6.2 bn higher than it was recorded at on their balance sheet? What benefit does this give them?
 
The reason is because of good will. This is the company's value that is intangible. They have a reputation, loyalty and name. Only when a company is bought do you know how much the company's good will the company is worth.
 
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