Abstract: AN APPRAISAL OF ACCOUNTING FOR DISTRESSED ASSET FUNDS AND WORKOUTS
This study aims to: (1) examine the accounting practices for distressed asset funds, (2) evaluate the challenges in valuing distressed assets, and (3) propose best practices for accounting during asset workouts. A survey design was adopted to gather data from 330 accountants and financial analysts in Port Harcourt, with the sample size determined using Taro Yamane’s formula. Port Harcourt was chosen due to its active investment scene and presence of distressed assets. The survey instrument had a reliability coefficient score of 0.86. Findings indicate that distressed asset funds require specialized accounting practices to accurately value and manage impaired assets. The study recommends the development of robust valuation models and accounting guidelines tailored to distressed assets to ensure accurate financial reporting and effective asset management.
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