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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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
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 put provider.
TRC: outlooks on Mega FHC Group revised to stable
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
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.
Statement by David W. Mullins, Jr., Vice Chairman, Board of Governors of the Federal Reserve System, before the Committee on Small Business, U.S. Senate, march 4, 1993
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.
Impaired assets: meeting users' information needs
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.
Impaired assets: making the right move
In a nutshell, FAS 121 is now the guideline for all companies to use when taking a write-off on an impaired asset.
New accounting write-offs popping up
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.
Assessing environmental risk; financial statement users are carefully scrutinizing the adequacy of environmental cleanup disclosures
fas 157, fas 159, impaired asset, impaired assets, otti
TPG Software Announces Rapid Implementation of OTTI Version of Portfolio Genius with Fast Track
3bn, a liquidity contribution of EUR350m and an impaired asset measure comprising a guarantee of nearly EUR2.
EU approves Spanish restructuring aid to Caja Castilla-La Mancha
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.
EU clears Irish bad bank plan

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