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Impaired Asset

   Also found in: Wikipedia 0.01 sec.
Impaired Asset
An asset with 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. A company must write down the value of impaired assets once per year. Common impaired assets include accounts receivable, long-term assets, and, especially, good will.


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The European Commission will probe "whether the rescue measures are capable of restoring the long-term viability of HSH Nordbank and whether they are compatible with the commission's state aid rules on impaired asset relief," said competition commissioner Neelie Kroes in a statement.
It is "absolutely unthinkable" for the Saudi central bank to buy impaired assets of debtors such as Saad Group and Ahmad Hamad Algosaibi & Brothers (AHAB), the Governor of the Saudi Arabian Monetary Agency (SAMA) said.
He added Nama was vital to deal with the current financial crisis and said: "It will arrange for an orderly arrangement by which impaired assets can be parked over a much longer time and banks can provide credit for business.
 
 
 
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