Case1_Example_CorD - Project 1 Requirement A 1. The...

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Project 1 Requirement A 1. The guidance that applies to the asset being impaired is, when the amount being carried over of the asset is not recoverable (Intermediate Accounting). In this case the company saw an economic slow down. They then saw the continuing loss of the asset, which they forecasted. They wanted to take financial action right away to keep there financials strong. Yes, the nature of the asset being written down does influence these adjustments. The carrying amount exceeds its fair value. 2. In the investing sector $475 million will be written down to carry over to the fourth quarter. This will directly effect the investment account. The carrying value does excess the fair value of the asset. This will impact the operating performance with investments. This write off may hold back future investments to occur. The carrying amount of this asset is not recoverable. Another write off of $100 million to restructure the company. This will cover cost of severance to reduce the staff by 700 people. This certainly is a big expense. But, down
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Case1_Example_CorD - Project 1 Requirement A 1. The...

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