Bermuda Aviation announced a goodwill write-down in its cargo handling segment of some $5.6 million, citing the struggling economy.The company, whose president and CEO is Kenneth Joaquin, also announced the purchase of a building on Bakery Lane, Pembroke where it will consolidate most of its subsidiaries, which include Aircraft Services Bermuda, BAS-Serco Ltd, International Bonded Couriers, Weir Enterprises, Otis Bermuda, CCS Group and Integrated Technology Solutions, in which it acquired a controlling interest in April.Mr Joaquin said the building is next to Pembroke Paint, and Buzz Café is the ground floor tenant. ProServe used to be located in the building.BAS announced in a release to the Bermuda Stock on Friday afternoon that the $5.6 million will be written off in its financial results for the period ended March 31. BAS said the writedown will have a “negative impact” on its earnings for year-end March 31.“Like most prudent companies, particularly in these economically challenging times, BAS has been constantly reviewing and testing its balance sheet to make sure that it fairly reflects a current picture of the company,” BAS stated.“Of particular attention was the goodwill that is currently recorded on the BAS balance sheet at $18.2 million. As a consequence of the ongoing difficult economic climate, we have concluded that there is an impairment, as defined by current accounting standards, in the goodwill that we are carrying in the cargo handling segment of our operations of approximately $5.6 Million.“This amount will be written off in the March 31, 2012 financial statements. Although this writedown will have a negative impact on our earnings for the March 31, 2012 year-end, we would emphasise that this is a one off, non-cash impact item and will have absolutely no effect on either the on going operational performance of BAS or the current strong cash position.”BAS said dividends “are and will continue to remain unaffected by this goodwill writedown” and the company has maintained its quarterly dividend of $0.05 per share to shareholders of record as of May 11, 2012.BAS continued: “The other adjustment of note to the BAS balance sheet for the March 31, 2012 year-end comes as a result of the required conversion of locally publicly traded companies from Canadian Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS). Under the newly adopted accounting standards, as they relate to accounting for defined benefit pension plans, there has been a reclassification of a Pension Plan Accrued Benefit Asset of $3.89 Million from the Non-Current Asset segment of the Balance Sheet to Retained Earnings resulting in the commensurate reduction in shareholders’ equity. This adjustment will have no effect on the March 31, 2012 earnings.“This adjustment, like the goodwill writedown, is a one-off, non-cash impact item and will have no effect on the on going operational performance of BAS.”The statement continued: “BAS is also pleased to advise that we have recently concluded on the acquisition of a building situated at 19 Bakery Lane in Pembroke. This new acquisition, the BAS Building, has allowed us to consolidate most of our subsidiaries in one location thereby generating significant operational efficiencies and cash savings.“Notwithstanding the required accounting adjustments and challenging economic environment, BAS continues to perform well and its cash position remains healthy. With the recent acquisitions of the BAS Building and our new subsidiary Integrated Technology Solutions Ltd. Management is optimistic about the Company’s future.BAS group employs more than 200 people. BAS shares last traded at $3 on the BSX.