WorldCom announced the write-off of all existing goodwill and a substantial write-down of the carrying value of its other intangible assets and property and equipment (PP&E). Specifics include:
- The value of goodwill reflected on the company’s last reported balance sheet, $45 billion, is impaired and will be written off completely; and
- The value of PP&E and other intangible assets reflected on the Company’s last reported balance sheet, $39.2 billion and $5.6 billion, respectively, is impaired and will be adjusted to a value of approximately $10 billion as of 31-December-2002
WorldCom said it is continuing the internal review of its previously reported financial statements and is undergoing an audit by KPMG LLP of its financial statements from 2000 through 2002.
http://www.worldcom.com
