back to article Toshiba faces nuclear power goodwill cost meltdown

Toshiba is facing such horrific cost-overruns with its US nuclear power plant projects it may have to sell assets, such as its flash memory business, to cover them. Its US subsidiary, Westinghouse Electric, is building four AP1000 power-generating reactors in the United States and costs are getting out of hand, with multi-year …

  1. fidodogbreath Silver badge

    the transaction closed in December 2015 with a goodwill component having an estimated cost of $87m. However the estimated cost is now several billion dollars, an astronomical difference.

    It seem like there's something missing from this explanation.

    1. Terry Cloth
      Unhappy

      Talking through my hat

      IANAA(ccountant); however, I read a book once. ``Goodwill'' is a way to account for the difference between the objective value of a company (buildings, equipment, contracted-for income, stuff that you can reasonably assign a value to) and what a buyer pays for it (covering reputation, the value of not having to start a business from scratch, employee knowledge and experience, whatnot).

      Now comes the hand-waving: maybe Westinghouse thought CB&IS&W was worth a billion, of which some tens of millions was goodwill. Then, when it starts to shake out, they discover that the actual value is negative billions, and assign the difference to goodwill.

      </ unfounded speculation>

  2. cantankerous swineherd Silver badge

    given that nuclear power is never going to be commercially viable and the increasing reluctance of the mug taxpayer to make up the difference, surely tosh would better off walking away from the nukes and keeping the electronics?

    1. Adrian Tawse

      Nuclear is dead, dead, dead

      At least in its uranium fueled form. And still the idiot UK gov insists on going ahead. Is there no end to the stupidity of politicians?

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