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General Accounting Discussions: what is future cash flow?

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    • CommentAuthorchico
    • CommentTimeJun 20th 2007
     
    Instead of deducting the value of goodwill annually over a period of maximal 40 years, companies are now required to value fair value of the reporting units, using "present value of future cash flow", and compare it to their carrying value. can someone explain me this concept? Thanks!
    Thankful People: nya
    • CommentAuthorranje
    • CommentTimeJul 13th 2007
     
    wellllll... i assume you are talking about discounting cashflows given an interest rate?

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