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More than 20 years after the scandal began, the valuation of financial assets for which there is no ready market remains a subject of controversy.
In bad times they find themselves sitting on assets for which there is no market.This has a number of adverse consequences.
Meanwhile, state-owned Japan Post, which has a big financial-services arm, recently announced a plan to boost returns by investing in riskier assets (for which, read equities).
There were "Nina" loans (no income, no assets), for which the borrower did not even have to claim having income or assets to get the loan.
Thus the state in effect paid the private sector some £17bn (AU$31bn) to facilitate the sale of assets for which there would otherwise have been no takers.
But investors remain unnerved by Lehman's valuing of so-called level three assets, for which there is not an observable market price.
Similar(36)
But it will also saddle JAB with an asset for which most investors believe it is paying well over the odds.
"Getting big dollars for an asset for which you paid nothing while still being able to run your traditional business over cable," he added, "seems a pretty good business proposition — unless you really are serious about providing new and innovative services and need all that spectrum".
There, the observations describe the price evolution of an asset, for which estimating its volatility is critical.
"There used to be no deductions for any intangible asset for which you could not prove a useful life, with goodwill being the primo example; now there is".
In 1971, for example, the now-defunct Accounting Principles Board, in the interest of conservative financial reporting, stated that the investment tax credit should be amortized over the life of the asset for which it applies.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com