Impaired Asset


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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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Bank of Scotland in early 2007 became aware that Director of Impaired Asset Team at Reading branch, Lynden Scourfield, had been sanctioning limits and additional lending facilities beyond the scope of his authority undetected for at least three years.
Bank Of Scotland Fined GBP45 Million Over Fraud Disclosure Failings
It is to be noted that a conservative higher provision of $0.5 million related to an old impaired asset in Saudi Arabia also contributed to the lower net profit figure for the first quarter.
ABC Islamic Bank posts $1.6m profit
The loan is ANZ's biggest single impaired asset. An ANZ spokesman maintained that the bank had reasonable grounds to expect a full recovery.
Apache bids to control Burrup
In a statement, the agency said, 'The ratings reflect the major Australian banks' dominant market position in their home markets, strong profitability, low impaired asset levels and solid and improving liquidity and capital positions.'
-Bank ratings of Australia affirmed by Fitch
Typically, ICON acquires an impaired asset from its clients that a company is ready to liquidate; such assets range from real estate to excess inventory to capital equipment.
ICON helps companies unlock hidden value
In addition to impaired asset data, Chart 9 presents capital ratios across the major banks as another measure of bank condition.
Credit Crunch or What? Australian Banks during the 1986-93 Credit Cycle
The FASB views this decision to use the impaired asset as being equivalent to a purchase decision.
Living with SFAS 121: how to avoid (or record) an asset writedown
An obvious example of an impaired asset might be a closed store location belonging to a retail operation where the organization continues to maintain the store property on the balance sheet at book value (original cost minus accumulated depreciation).
Meet SFAS-121: FASB's recent attempt to bring asset values in line with "real" values
A conservative higher provision of $500,000 related to an old impaired asset in Saudi Arabia also contributed to the lower net profit figure for the first quarter this year.
ABC Islamic Bank posts net profit of $1.6 million
"This impaired asset measure, which is specifically targeted at real estate assets, is therefore key to cleaning up Irish banks' balance sheets.
GO NAMA; Toxic loans bank gets all-clear from Europe
"Typically, ICON acquires an impaired asset from its clients that a company is ready to liquidate; these assets range from real estate to excess inventory to capital equipment.
ICON barter programs add value to bottom line
Impaired asset expenses made a negative contribution to the pre-tax profit, after a 50.4 per cent or $64 million increase over the year.
Developments in the New Zealand banking industry. (Articles)

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