This impaired asset
measure, which is specifically targeted at real estate assets, is therefore key to cleaning up Irish banks' balance sheets.
As of the end of June 2009, the group has significantly written down most of its impaired assets
, including the ABCP and residential mortgage-backed securities (RMBS), which Mega Bank bought from the trustee of several collateralized bond obligation (CBO), given its role as a credit-impaired asset
In addition to impaired asset
data, Chart 9 presents capital ratios across the major banks as another measure of bank condition.
The FASB views this decision to use the impaired asset
as being equivalent to a purchase decision.
Indeed, all financial institutions responded in a similar manner to this economic environment of deleveraging and impaired asset
quality regardless of whether they were subject to risk-based capital standards.
The FASB defended itself by concluding that a company's decision to continue operating rather than sell an impaired asset
essentially is a capital investment decision-- management believes operating the asset is more beneficial than selling it.
121 requires finding the expected net cash flows for an asset or a group of assets at the time impairment is identified, only the timing of cash flows and the appropriate discount rate remain to be identified at the time a potentially impaired asset
, with no market value, is subsequently examined.
In a nutshell, FAS 121 is now the guideline for all companies to use when taking a write-off on an impaired asset
If before issuance of the financial statements it appears probable an environmental exposure has resulted in a liability or an impaired asset
as of the balance sheet date and the amount of loss can be reasonably estimated, the loss is accrued by a charge to income and appropriate disclosure is provided.
fas 157, fas 159, impaired asset
, impaired assets
3bn, a liquidity contribution of EUR350m and an impaired asset
measure comprising a guarantee of nearly EUR2.
European competition commissioner, Joaquin Almunia, said, 'This impaired asset
measure, which is specifically targeted at real estate assets, is key to cleaning up Irish banks' balance sheets.