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.
References in periodicals archive ?
State aid assessment of impaired assets valuation and resolution mechanisms.
A transfer of impaired assets will accompany these measures to reinforce their long-term solidity.
A fall in impaired assets and gains accruing from tighter cost control were reported as contributing factors for the impressive results.
As one of the conditions imposed in return for the European credit, Madrid agreed to create bad bank Sareb to absorb impaired assets from troubled banks.
Preopening expense fell 25% to $6 million, while the provision for impaired assets, closing costs and other items was unchanged at $1 million.
The company, which came into existence through the merger of savings banks Caixa Catalunya, Manresa and Tarragona, put aside EUR143m of provisions to offset impaired assets in January to September 2011.
In Fitch's opinion, capitalisation seems somewhat tight given the reducing, but still sizeable volume of unreserved impaired assets to the bank's reported equity.
While the repayment of 'impaired' assets has slowed, an estimated 68 per cent of all impaired assets have been repaid to investors representing $118 billion, according to the report.
Conservative higher provisions on impaired assets from the previous year also contributed to a lower net profit figure of $1.
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.
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.
Pal, 09 Sept: Muhammad Al-Jasser, the governor of the Saudi Arabian Monetary Agency (SAMA) said 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).