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Old 03-10-2017, 01:04 PM   #3610
red sky
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Quote:
Originally Posted by Slava View Post
Is the reserve value being written down an impairment though? I thought it would be more like a marked-to-market situation? (Clearly this wasn't my favorite portion of the CFA curriculum!)
Here is some more detail but yes.

https://www.iasplus.com/en-us/public...ght/og/issue-4

Also:

Quote:
Recognition of Impairment Loss
When recognizing an impairment loss, companies that apply the full-cost method should reduce the carrying value of the full-cost asset pool and record the excess above the ceiling as a charge to expense in continuing operations. Like the successful-efforts method, the full-cost method precludes companies from reversing write-downs
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