banks have written down
about $510 billion in assets with further write-downs of $550 billion expected over the next two years.
Applying the lower of cost or market and arm's-length price principles Even assuming the taxpayer has properly written down
its inventory in compliance with the regulations and Thor Power, the Sec.
If a noncurrent marketable security's cost basis was written down
because an other-than-temporary decline occurred, "the new cost basis shall not be changed for subsequent recoveries in market value.
74 million) will be fully written down
in approximately 16 months, at which time losses will begin to impact the M2V bond.
The B2 bond is currently being written down
as a result of monthly losses.
Gavula also announced that the Board has been informed that, effective January 1, 1994, the Partnership is subject to a new accounting rule -- SFAS 115 -- which requires the cost basis of an individual security be written down
to "fair value" if there is a decline in yield below risk free interest rates for investments of comparable maturity.
All classes, except for class B, which was written down
to $0 in July 2005 as a result of losses, have the benefit of a letter of credit (LOC) provided by First Union National Bank to absorb future losses.
Gold prices have not increased as projected, and the book value of the property will be written down
However, class B-2 was paid off in October 2002, the senior LOC was drawn down to $0 in May 2003, and class B-1 was written down
to $0 in August 2004.
The downgrades of the B-I-1 and the B-I-2 bonds reflect the likelihood of class B-I-3 being fully written down
in as little as six months at which time the class B-I-2 will begin taking principal write downs.
The residuals were written down
so that their June 30, 1992 book values equalled the sum of their projected future cash flows based on an assumed continuation of the current high prepayments.