net loss of 78.72m, page-5

Write off asset value - what is it?

Reducing the book value of an asset because it is overvalued compared to the market value. A write-down typically occurs on a company's financial statement, when the carrying value of the asset can no longer be justified as fair value and the likelihood of receiving the cost (book value) is questionable at best.

Impairment is the opposite of appreciation. That is, the reduction in quality, strength, amount, or value of an asset. "Impairment charges" means that a company reduces or "writes down" the value of the assets on its books.

So correct me if I am wrong but Neon writing their assets down is not technically a loss as in losing money that you have to pay back to someone. OK, it is not a good thing, I am sure a company would rather want to revalue their assets up. Probably wouldn’t help any credit rating they had either (if indeed they have one).

Let’s just wait for the announcement and we can dissect it like a bunch of schoolboys in the biology class! More thoughts tomorrow…………….