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The FASB has before addressed the issue of asset impairment in many different standards but perhaps none so broadly as in Statement No. 121. When should long-lived assets and intangibles be written down and by how much? How should assets to be disposed of be accounted for until disposition and should they continue to be depreciated? These are issues addressed by the FASB in this new standard, soon to become effective for all enterprises, including notfor-profit enterprises, and most long-lived assets. SFAS 121 does not deal with methods of depreciation or amortization of such assets, except to say that assets to be disposed

Increasing numbers of investors have been getting involved in the secondary mortgage market by purchasing asset‐backed securities, including investments in real estate mortgage investment conduits and collateralized mortgage obligations. Although securitization is an evolving area, pledging expected asset cash flow to raise funds has become standard practice. Several factors have led to the popularity of securitization, namely, an ability to quantify and minimize the risk, assignment of independent credit ratings, and enhanced after‐tax rates of return when compared to comparable credit‐risk investments. This article discusses the economics of these investments, as well as the appropriate accounting and tax treatments.