Goodwill writeoffsOne of Blackberry's first actions to show losses in the Company
- the writing off of all goodwills
In the first Quarter of Fiscal 2013, RIM bought a company Paratek
with a goodwill of $31M and wrote the goodwill costs off in the very Quarter of Purchase.
The CFO recognised it as impaired, immediately with all the other goodwills
Wikipedia
Writedown[edit]
A writedown is an accounting treatment that recognizes the reduced value of an impaired asset. The value of an asset may change due to fundamental changes in technology or markets. One example is when one company purchases another and pays more than the net fair value of its assets and liabilities. The excess purchase price is recorded on the buying company's accounts as goodwill. If it becomes apparent that the purchased company no longer has the value recorded in the goodwill account (i.e., if the asset cannot be resold at the same price), the value in the goodwill asset account is "written down"
Immediately on the purchasing of Paratek, they recognised that it has no resale value, similar
after producing millions of Z10 in a short period, they recognised it has no value hence the writeoffs
Don't you have to know what you are doing to run a company?
Maybe they don't or maybe or maybe they are up to no good.