02-24-2010, 01:44 AM
There is an entity in Pakistan which has a wholly owned subsidiary in foreign.
Parent entity invested about 500,000 Euros five years back.
Uptill last year subsidiary had Accumulated losses of 639,000 Euros.. Auditors of the company proposed for impairment but did not made any as positive Cash projections were provided.
This year though Company met with projections, but still that subsidiary has Accumulated losses of almost 587,000 Euros.
Will anybody help me that should we charge impairment or not, and can we rely on projections. Further if we are to charge impairment that how should we calculate it.
Regards
Noor
Parent entity invested about 500,000 Euros five years back.
Uptill last year subsidiary had Accumulated losses of 639,000 Euros.. Auditors of the company proposed for impairment but did not made any as positive Cash projections were provided.
This year though Company met with projections, but still that subsidiary has Accumulated losses of almost 587,000 Euros.
Will anybody help me that should we charge impairment or not, and can we rely on projections. Further if we are to charge impairment that how should we calculate it.
Regards
Noor
