I can tell you for writedowns, you cannot just writedown for the sake of simplifying the process. The auditor would never approve it.
Its rigorously assessed and has to be approved by the auditor. The only way they will approve such a writedown is simply because after discounting the business, its worth zero, absolutely zero.
I was involved in impairment in my ex company and its one where auditors would push for writedowns up to the value the model allows (fv calculation) but the company would ALWAYS argue for minimal writedowns. when a full writedown is done and approved by an auditor, its simply because the business generates z e r o money.
CM8 Price at posting:
4.9¢ Sentiment: None Disclosure: Held
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