Subsidiary OTTI

[JamesG-PNAtUSNA]

Can a previously written off subsidiary (100% common stock owned by parent)
become an admitted asset again if it returns to a positive Equity balance?

[Lisa]

James,
Please refer to SSAP 97, Investments in Subsidiary, Controlled and Affiliated Entities. Paragraph 33 addresses the impairment issue for a SCA entity. Within the paragraph it indicates once an impairment is taken, the new cost basis should not be changed for subsequent recoveries in fair value.

Thanks
Lisa Mullen