The note addresses accounting for mergers and acquisitions by using the example of P and G's acquisition of Gillette. It explains the accounting journal entries that are recorded in an M and A transaction and the process of calculating goodwill and subsequent impairment.

Economic Value Added (EVA) measures the difference between the return on a company’s capital and the cost of that capital. A positive EVA indicates that value has been created for shareholders; a negative EVA signifies value destruction.