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4.29 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   2017   2016
Cost at 1 January   1,544   1,544
De-recognition of fully amortised goodwill   –135  
Cost at 31 December   1,409   1,544
 
Accumulated amortisation at 1 January   –1,262   –967
Depreciation and impairment   –282   –295
De-recognition of fully amortised goodwill   135  
Accumulated amortisation at 31 December   –1,409   –1,262
 
Theoretical net book value at 1 January   282   577
Theoretical net book value at 31 December     282

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 68,774,000 (2106: CHF 68,639,000) of fully amortised theoretical goodwill.

theoretical impact on net income for the period

in CHF thousand   2017   2016
Earnings before interest and taxes (EBIT) according to consolidated income statement   12,643   18,530
Goodwill amortisation   –282   –295
Theoretical earnings before interest and taxes (EBIT) including goodwill amortisation   12,361   18,235
 
Net income for the period after minority interests   4,771   10,806
Goodwill amortisation   –282   –295
Net income for the period after minority interests including goodwill amortisation   4,489   10,511

theoretical impact on shareholders’ equity

in CHF thousand at 31 December   2017   2016
Equity before minority interests according to the consolidated balance sheet   145,432   146,542
Theoretical capitalisation of goodwill (net book value)     282
Theoretical equity before minority interests including goodwill (net book value)   145,432   146,824