Asset impairment

Asset impairment

Asset Impairment

The state in which an asset has a market value less than its value listed on the company's records, especially when the value is unlikely to recover. The cash flow an impaired asset will generate is less than the difference between its market value and its book value. Impaired assets include bad debt, obsolete equipment and, most especially, goodwill. A company must write off its asset impairment each year.
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8% of sales, in the third quarter last year, excluding a previously announced pre-tax restructuring and asset impairment charge of $12.
Disruptive factors, such as the rise in distributed generation, and new developments in demand response and storage capacities could also have a resounding impact on asset impairment.
reported net income in the fourth quarter of $599,000, or 6 cents a share, which includes a 3-cents-a-share adjustment for an operating asset impairment charge.
The asset impairment accounting system has been introduced throughout the world since the mid-1990s.
8 billion), actually 34% lower than the previous period in 2004, due to the adoption of asset impairment accounting methods within the Japanese accounting system.
20 due to early application of its asset impairment accounting.
For example, it is possible for a company to recognize an asset impairment under IFRS, while a different amount, or possibly no impairment loss at all, would be recognized under U.
It requires governments to report the effects of capital asset impairment in their financial statements when it occurs, and it enhances comparability of financial statements by requiring all governments to account for insurance recoveries the same way.
42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries, requiring governments to report the effects of capital asset impairment in financial statements.
Edison Chief Executive Officer John Bryson attributed the earnings drop to a $150 million, 45-cent-per-share, asset impairment charge related to eight Illinois peaking plants operated by EME.
Second, some companies report asset impairment only at year-end.
121's effective date of fiscal years beginning after December 15, 1995, most companies will have had more than 18 months since it was issued to prepare for reporting on asset impairment.
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