(29) As regards assets depreciation losses, it is required to list the amount of such losses at current period and that at last period item by item.

Chapter VI Impairment of Financial Assets

Protection from diminution of the value of encumbered assets

Protection from diminution of the value of encumbered assets (paras.

Article 42Where a financial asset measured on the basis of post amortization costs is impaired, the carrying amount of the said financial asset shall be written down to the current value of the predicted future cash flow (excluding the loss of future credits not yet occurred), and the amount as written down shall be recognized as loss of the impairment of the asset and shall be recorded into the profits and losses of the current period.

(11) As regards assets depreciation reserves, it is required to list item by item the beginning balance, amount prepared at current period, amount carried back at current period, amount written off at current period and ending balance of such reserves.

The financial assets which have suffered from an impairment loss in any single amount shall not be included in any combination of financial assets with similar risk features for any impairment test.

Where there is any objective evidence proving that such financial asset has been impaired, an impairment provision shall be made.

(9)Other objective evidences showing the impairment of the financial asset.

(3)after deducting the impairment losses that have actually incurred (only applicable to financial assets).

The objective evidences that can prove the impairment of a financial asset shall include

During the period of the stay it is possible that the value of the encumbered asset will diminish.

Where, upon independent test, the financial asset (including those financial assets with significant single amounts and those with insignificant amounts) has not been impaired, it shall be included in a combination of financial assets with similar risk features so as to conduct another impairment test.

With regard to the financial assets with insignificant single amounts, an independent impairment test may be carried out, or they may be included in a combination of financial assets with similar credit risk features so as to carry out an impairment related test.

(b) The value of the encumbered asset is diminishing as a result of the commencement of insolvency proceedings and the secured creditor is not protected against that diminution of value and

Net Worth

In the case of transfer in, sale, replacement, mortgage, guarantee or seal up of any fixed assets under construction, an explanation thereon must be given.

Net Worth By Month

A. Market value of assets

if the assets sold are non equity assets, the total assets and the net assets are respectively the book value of the assets and the difference between the related assets and the book value of the liabilities

If any objective evidence shows that it has been impaired, the impairment related losses shall be recognized and shall be recorded into the profits and losses of the current period.

Net worth forecast

Net Worth Today

Net Worth By Year

Forfeiture of assets of equivalent value

Article 32 An enterprise shall set up a reserve management system for asset loss or depreciation.

The standards for preparing the asset loss or depreciation reserve, once determined, may not be altered at discretion.

GFCF Gross Fix Capital Formation

(i) Protecting the value of the encumbered asset

Investment rate ( GDP)

Some insolvency laws provide that the insolvency representative should protect secured creditors against any diminution either by providing additional or substitute assets or making periodic cash payments corresponding to the amount of the diminution in value.

(ii) The secured creditor will be protected against diminution of the value of the encumbered asset in which it has a security interest.

Group II, shown in annex I.C to the present report, consists of assets with an inventory value of 0.9 million (depreciated value of 0.5 million) and represents 2 per cent of the total value of ONUMOZ assets.

(ii) Implicit price deflators of Gross Domestic Product (GDP)

The balance between the carrying amount of the said investment at the re classification day and the fair value shall be computed into the owner s equity, and when the said sellable financial asset is impaired or transferred out when it is terminated from recognizing, it shall be recorded into the profits and losses of the current period.

Central to the notion of protecting the value of encumbered assets is the mechanism for determining the value of those assets to enable the court to consider whether and how much to provide to secured creditors as relief against the diminution of the value of encumbered assets during the proceedings.

The forfeited assets of equivalent value become State property.

19. Prior to 1989, certain buildings purchased by UNICEF and considered as capital assets were valued at cost less accumulated depreciation.

However, the reversed carrying amount shall not be any more than the post amortization costs of the said financial asset on the day of reverse under the assumption that no provision is made for the impairment.

Article 49After an impairment of a financial asset, the interest incomes shall be recognized at the interest rate which is used as the capitalization rate in the capitalization of the future cash flow when the impairment related losses are determined.

2 If the assets purchased are non equity assets, the total amount is the book value of the assets or the transaction amount, whichever is higher, and the net value of assets is the difference between the related assets and the book value of the liabilities or the transaction amount, whichever is higher

(2)The profits and losses arising from the change in the fair value of a sellable financial asset shall be included directly in the owner s equity with the exception of impairment losses and the gap arising from foreign exchange conversion of cash financial assets in any foreign currency, and when the said financial asset is stopped from recognition and is transferred out, it shall be recorded into the profits and losses of the current period.

And when the said sellable financial asset is impaired or transferred out when it is terminated from recognition, it shall be recorded into the profits and losses of the current period.

(b) Group II consists of assets with an inventory value of 158,600 (13 per cent of total asset value) and includes two subgroups, (a) and (b), as follows

Even if it was assumed that the equity of a company represents its underlying assets, the Panel cannot value those assets in the absence of specific information about the quantum of the claim for each asset allegedly lost by the claimant.