Rune Møller illustrates the changes in the 2004 P/E values of the KFX companies assuming that the companies had not amortised goodwill. The scene is set for major changes to this financial ratio for a number of companies.
The future accounting rules without systematic amortisation of goodwill will according to Rune Møller give a truer and fairer view of a company’s financial development.
Read more about the topic in ’New accounting standards may result in rising prices’ in Focus no. 90.