Statement on asset impairment and insurance recoveries.GASB GASB Governmental Accounting Standards Board has published Statement No. 42, Accounting and Financial Reporting for Impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of Capital Assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) and for Insurance Recoveries, requiring governments to report the effects of capital asset impairment in financial statements. The new statement also requires all governments to account for insurance recoveries in the same manner. Effective for fiscal years beginning after Dec. 15, 2004, the statement requires governments to assess major events--including physical damage, changes in legal or environmental factors and technological changes or obsolescence--affecting capital assets to determine whether they are impaired See assistive technology. . You can order Statement No. 42 by calling GASB at (800) 748-0659. |
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