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Bullboard - Stock Discussion Forum Tuscany International Drilling Inc T.TID

TSX:TID - Post Discussion

Tuscany International Drilling Inc > Existing Shareholder Equity
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Post by Engima on Feb 12, 2014 11:32am

Existing Shareholder Equity

The most recent document filed on Sedar says "Impaired-deemed to reject" regarding existing shareholder equity? Does anyone know what this means?
Comment by justsomeguytrading on Feb 12, 2014 3:18pm
I interpret it this way: Impairment is when the market/fair value of the asset is less than the carrying/book value.  When this occurs, the asset is deemed to be impaired and the company must reduce the book value to match the current fair value . Example:  Your bought a car, and the current loan outstanding (book value) is $20K.  You can only sell (fair value) ...more  
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