Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (12711)	3/2/2001 10:09:19 PM
From: Math Junkie	Respond to of 42834

Here's an interesting look at what went wrong in Japan, and a comparison to certain dot com practices: suite101.com

To: Investor2 who wrote (12711)	3/3/2001 6:37:23 AM
From: Boca_PETE	Read Replies (1) \| Respond to of 42834

I2 - RE: "What is "permanent impairment? (Under the Revised FASB M&A Proposal)" It occurs when one or more conditions upon which one based the acquisition of an asset or business change making it unlikely that the book basis of the asset or investment will be recovered. For example, say your company buys another company that manufactures gasoline powered cars. The value of the company shares acquired is based upon the present value of the profits of the manufacturing business - a substantial amount. Five years after buying the company, regulations change to only permit the manufacturing of fuel cell cars. As a result, your investment in that company has become permanently impaired (reduced in fair value). As a result of the regulation change, you could now only sell the shares of the manufacturing business for the present value of the cash flows you could get by renting the factory building which are substantially less than what you paid and show as an investment book value on your balance sheet. The FASB rules would require you to reduce the book value of your investment in that company to its' current fair value, reporting an impairment loss for the reduction in the period of the regulation change. Here is a link to the entire FASB revised proposal if you or anyone are interested. It can be downloaded for free. accounting.rutgers.edu P