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4.30 Goodwill from acquisitions

The goodwill arising from acquisitions is offset against the group shareholders’ equity as of the date of acquisition. A theoretical capitalisation of the goodwill would have the following impact on the annual financial statements:

theoretical statement of goodwill

in CHF thousand   2018   2017
Cost at 1 January   1,409   1,544
De-recognition of fully amortised goodwill   –1,409   –135
Cost at 31 December     1,409
Accumulated amortisation at 1 January   –1,409   –1,262
Depreciation and impairment     –282
De-recognition of fully amortised goodwill   1,409   135
Accumulated amortisation at 31 December     –1,409
Theoretical net book value at 1 January     282
Theoretical net book value at 31 December    

A theoretical straight-line amortisation period of five years is applied. In the above theoretical statement of assets, goodwill items are converted to Swiss francs at the exchange rate on the date of acquisition. Such an approach requires no currency adjustments in the statement.

Following the amortisation of the full theoretical amount, goodwill will no longer be listed in a theoretical statement. Retained earnings include CHF 27,932,000 (2017: CHF 68,774,000) of fully amortised theoretical goodwill.

theoretical impact on net income for the period

in CHF thousand   2018   2017
Earnings before interest and taxes (EBIT) according to consolidated income statement   11,990   12,643
Goodwill amortisation     –282
Theoretical earnings before interest and taxes (EBIT) including goodwill amortisation   11,990   12,361
Net income for the period after minority interests   –50,067   4,771
Goodwill amortisation     –282
Net income for the period after minority interests including goodwill amortisation   –50,067   4,489

theoretical impact on shareholders’ equity

in CHF thousand at 31 December   2018   2017
Equity before minority interests according to the consolidated balance sheet   141,594   145,432
Theoretical capitalisation of goodwill (net book value)    
Theoretical equity before minority interests including goodwill (net book value)   141,594   145,432