Impaired capital

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Impaired capital

When a company's total capital is less than the par value of all its capital stock.

Impaired Capital

A situation in which the total value of the capital in a publicly-traded company is less than the par value of its capital stock. Companies with impaired capital have usually taken out too many loans or have made a series of poor investments. Impaired capital may force a company to issue more stocks (for example, in a down round) or to liquidate.
References in periodicals archive ?
The Company recorded an impairment of capital assets of $18.
Any consequent impairment of capital and appearance of insolvency might damage the central bank's credibility in preventing inflation.
42, "Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries.
42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries, which requires governments to report in their financial statements the effects of capital asset impairment when it occurs.
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.
The new pronouncement also offers guidance on the appropriate accounting treatment for insurance recoveries, including those not associated with the impairment of capital assets.
Bad loans mounted sharply but the mass of depositors believed that hidden reserves would suffice to offset any possible impairment of capital.
EBITDA is calculated as earnings before interest and certain other expenses, provision for income taxes, depreciation and amortization and impairment of capital assets.
42 of the Governmental Accounting Standards Board--Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries
The second exposure draft, "Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries," would require governments to report the effects of capital asset impairment in their financial statements when they occur.
42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries, that requires governments to report the effects of capital asset impairment in their financial statements when it occurs.
Excluding charges of $9,897,000 and $1,548,000, respectively, as to financing costs and impairment of capital assets and capitalized software, the net loss for 2003 was $6,093,000.