it would be the same for them. The assets are valued at lower of cost or realisable value. A down grade would be based on realisable value being lower than cost and the asset being downgraded to reflect that. Realisable value of the assets is based on sales price and margin I.e discounted profits over life. It may be prudent to write the assets down and take a one off hit. The company has the advantage of less amortisation and depreciation charges in future and greater NPATAD in future years a it would be in a new CEO interest to do this and wipe the slate clean so his measured performance is not hampered by large amort and depreciation charges for an asset that should have been written down before he stepped in. He will certainly be looking at that
GXY Price at posting:
$1.55 Sentiment: None Disclosure: Not Held
