Now usually such assets are pledged/hypothecated to Banks/financial institutions or such other lendors including debenture/bond holders. They always do a valuation by an approved valuer to safe guard thier interest. They also insist on insuring the assets from damage/loss due to accidents, fire, Riots, Strike,Malicious damage. These policies are to safeguard probable losses. some companies also take Machinery break down policy to insure loss of production due to break down. The loss/profit is now recognised when the enterprise sells this asset after the useful economic life of the asset. Now to compel the enterprises to do an exhaustive valuation on every balance sheet date with discounted rate of future cash earnings from every such revenue generating units consisting of multiple assets is a needless exercise. I am sure whatever is published in books of account as to impairment is nothing but cocked up stories to satisfy a legal requirement. This is like the corporate governance report which has helped independent Directors to earn for their complicity because they happen to chair/participate in many committees like Remuneration, investor grievance, audit committee etc with or without domain knowledge.

AS-11 mandates that Forex losses/gains should be recognised on an annual basis. the recent spurt of the dollar vis-avis our INR madelife miserable for units which had exposure to Forex loans. Government byepassed this standard and allowed companies to amortise this loss/gain by capitalising such amount to the cost of assets acquired. Now till the tenor of the loan is over, one need not recognise the probable loss/gain based on the principle of conservatism. ( well you may argue this calls for provision of all losses but as long as the loan is outstanding the obligation is not over) May be one may call for a disclosure in notes to what could have been the effect on profits had they been recognised.

It is for ICAI and Accounting Standards Board to revist the issue