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Tennessee last year became the first state to pass legislation recognizing loss of companionship when a pet is killed.
Create new rituals Rituals are powerful bridges: from past to present, from individual to community, from recognizing loss to embracing life.
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Therefore, Enron purported to enter into certain "hedging" transactions in order to avoid recognizing losses from its investments.
Banks have been rushing to unload these so-called cross-shareholdings to avoid recognizing losses on them when the accounting rules change next year.
Financial institutions across Europe are recognizing losses on their holdings of Greek bonds as it becomes obvious that the country will never pay off its debts in full.
As the experience of Japan showed in the 1990s, zombie banks tended to keep lending to troubled borrowers to avoid recognizing losses from bad loans.
At the same time, vast unused capacity in practically every industrial sector has crippled profitability and left manufacturing firms straining to repay their borrowings, a problem that has been partly masked by banks in the habit of simply rolling over loans rather than recognizing losses.
Individual investors often suffer from loss aversion –they delay selling stinker stocks because they find recognizing losses so distasteful.
First, there is delay in recognizing losses while issuing assurances (e.g. "the subprime problems are contained").
But the write-downs cast a shadow on the sector and suggest investors need to be wary of companies that choose to put off recognizing losses long after they're due.
Bankers resist, because it could force them to recognize losses they would prefer to delay.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com