When contacted on the issue, Dr Ishrat Husain (ex-governor, SBP) termed write offs
as a recognition of reality - that the original asset has diminished in value and, therefore, it needs to be carried on the balance sheet at its realistic value.
In addition, many hospitals are retrospectively reviewing write offs
related to charity and bad debt accounts.
The bankers said that they would consult their key managements and the legal counsels and devise strategies in respect of write offs
and report to the State Bank.
Then on November 9, 2005, Mills announced poor financial results, with Funds From Operations declining 35%, and announced numerous write offs
for previously undisclosed projects.
Excluding year-end write offs
and write downs, income after taxes amounted to $579,000 in 1996, compared with a loss after taxes of $6,400,000 in 1995.