Different Impairment approaches

Impairment - we are used to this term being used for fall in value of fixed assets below their carrying amount in books. Soon, Impairment would be the "word" to be careful of for the company's preparing financial statements. Of course that means, we auditors will have honeymoon period rather a prolonged one. We have our BADA friends who will threaten their clients and if possible general public!! Coming why it is going to be such an important factor in the future. Now, impairment will be require to be tested for financial assets as well.

There are variety of approaches that IASB deliberated. To name them, (i) expected loss approach, (ii) incurred loss approach, (iii) fair value based approach and (iv) IAS 36 based - value in use approach. Finally, they have decided to go ahead with expected loss method, as practically incurred loss is not line with framework, while fair value and value in use concepts require undue costs and efforts on the entity to comply with.

Now, the question is how to determine expected loss. The important variable in determining what expected loss is, is the consideration of conditions surrounding the assets. The conditions that existed through the cycle of similar assets, determination based on conditions of past and existing situations and third appropriate alternative is to have consideration to all reasonable and supportable informations and conditions - may be termed as 'full scope - expected loss method'.

The task is going to get tougher. But the deliberations before standard comes helps in understanding the concepts in better light. Isn't it??

Stone melts - partially though

I have never been so loving, so affectionate, so caring, so compassionate, so kind-hearted, so tolerant, so warm, so understanding and can include any other good thing expected of a person. This is certainly a change in me that those close to me have noticed. For others its just how a normal human being is supposed to be. Whatever, I have changed rather I have started to live my life the way others want to.

Why is this change so important in my life? Why is it, I have lived life the way I wanted to so long without considering that there are others who are living the way I want it? How is it going to affect people around me? How is it going to affect me? These are the questions that float around having realized that I have changed. Well, I need to find answers for that and fortunately I have found out.

This change makes me a part of society. This change makes me an human being who can be impactful. A person who will be missed. A person who can think what others feel. Larger portion of my life (touch wood) I believe is yet to happen. Larger to mean both in terms of depth and longevity. Obviously the benefits I would reap will be much more and so I have not missed much due to my erratic nature.

My past in many ways attributing to my ego has been glorious past. I was so egoistic and self centered that I cared a damn about what others feel. I can never empathize. I can never console a person. I can never feel that somebody will feel bad if I shout at them. I was so selfish that I have never worried about tears in others eyes – whether in front of me or outside my vicinity. I was so used to these qualities I never felt that I was odd man out. I never realized that I should be loved and taken care of. I saw everyone as selfish and those who do their duties. Similarly felt that I have a duty to do material things I receive. I never felt the intangibles of friendships or relationships. I never realized I was losing out on friendships. Still, I should say I am fortunate to have a bunch of friends who I can proudly hold out as friends to anybody in this world.

The people around me are important part of me as I realize. Its not going to be possible to live in isolation. I need love, affection, attention, care of people around me. I need to essentially be eligible to receive these. Only way I can be eligible is to give whatever I expect.
I am the ultimate beneficiary. There is certainly an argument from within me that I changed because of my realization that I need to benefitted more than what I possess today. I have again been selfish. I have changed by compulsion. But the fact is I needed to realize it. And the ultimate fact is I realized it. Well, I was made to realize.

I have changed. A word of caution for myself though is I have not changed for all.