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Write-offs - the painful lessons are recorded

March 02, 2013

Corporate giants make mistakes, as do smaller businesses and governments. Accounting rules dictate that once projects or investments can no longer support a valuation of assets based on future cash flows they must be written down. Three recent write-downs have a northern context.



Even giant corporations run by really smart people make mistakes. Write-offs are an important recognition through financial statements that future cash flows must support the carrying value of assets.

The suggested ‘lessons learned’ for these big corps: