This disadvantage aside, some observers believe that companies should favor SCT over realizable
numbers because of the former's relative simplicity.
With the distinction between pay opportunity and realizable
pay clearly drawn, we can now answer the critical questions that arise in setting executive compensation at any company, but particularly at companies where there may be a delay in translating earnings improvements into stock price appreciation.
We have consistently used realizable
pay to make comparisons between compensation and performance," said Pay Governance partner Ben Stradley.
Generally, if the taxpayer offers the net realizable
equity in his assets and the present value of five years of future income after reduction for necessary living expenses, the Service will give serious consideration to accepting the offer.
Contrary to claims made by compensation critics, there is a very strong relationship between pay and performance as reflected through realizable
pay," said Pay Governance managing partner Ira Kay.
Thus the reorganization value represents an economic value; it is the present value of the aftertax future cash flows expected to be generated by the assets making up the reconstituted entity that emerges and the net realizable
value of those assets that will be disposed of.
If a taxpayer is permitted to borrow up to the full amount of his equity in the plan, this should be taken into consideration in the computation of realizable
The net decrease was offset by (i) a net increase in value of real estate assets under development of $1,747,042 which results primarily from changes in the net realizable
value estimates, including the shortening of the discount periods as a result of the passage of time and sales of condominium units and homes and (ii) operating income of approximately $1,272,765 which primarily represents interest income earned from cash and cash equivalents.
On the first issue, discussion centered on whether a write-down of nonmonetary assets (for example, fixed assets or identifiable intangibles) to net realizable
value should be reversed.
0 million in our remaining real estate assets, due to a revision of the estimated selling costs and certain contractual provisions which we believed impacted the net realizable
value of our real estate assets and a $1.
The allowance for loan losses represents the quantification of management's assertion the loan portfolio is valued at its net realizable
value in accordance with generally accepted accounting principles.
The Ontario government standard offer contract provides a clear opportunity for these projects to become realizable
in the near term.
Dollars) one-time charge against earnings in the third quarter for a number of non-recurring items including the write down of inventory from the 2005 crop to its net realizable
value to Enron from Prisma Energy during 2006 is expected to be approximately $2.
These decreases were offset by (i) the net increase in value of real estate assets under development of $1,353,297 which results primarily from changes in the net realizable
value estimates including the shortening of the discount period due to the passage of time and sales of condominium units and homes and (ii) operating income of $830,848 which primarily represents interest income earned from cash and cash equivalents.