Hi,
According to Schweser Notes one of the adjustments to NOPAT is
“Capitalize (but do not amortize) goodwill, add amortization expense back to earnings to get NOPAT, and add accumulated amortization back to total capital”.
This statement is no mentioned in the Curriculum.
I completely get that you should not amortized goodwill.
The part of adding back amortization expense to NOPAT and accumulated amortization back to total capital I assume it does not refer to goodwill. I think it refers to other long-lived asset other than goodwill. Am I right?
Thanks in advance.