I have a holding where receivers have been appointed and my best guess is the shares have no value but PP calculations are based on the last quoted (traded) price which seems unreasonable in this instance.
What is the best way of recording this holding? If there is any return it is likely to be years away.
Write down the investment to one euro and wait to see how the insolvency proceedings turn out.
What type of transaction is that?
That’s what I mean. 
As long as the insolvency proceedings are ongoing the value of the company is zero. I would therefore devalue the investment to one euro and book it manually. IMO it’s enough if you do this once a month.
The depreciation of one euro relates to the entire investment, not to the individual securities. You must therefore divide one euro by the number of shares. The value of the individual shares is then close to zero.
I take it the comments are speculation rather than something known to work.
This works:
0.00000001.That’s still a little messy, perhaps edit the XML too:
v="1" (maybe 0 would work here)No, it wasn’t speculation. It was an explanation of how an investment is depreciated in business terms and how this is shown in PP.
It is all the more useful that you have described the practical handling of depreciation in PP in detail using a specific example.
Thank you and best regards, Laura
Thank you @Laura @ProgFriese, let’s consolidate that:
0.00000001It should also be added that the procedure of writing down the investment to the memo value applies for the duration of the insolvency proceedings.
Once the insolvency proceedings have been concluded, the following should be done:
CU, Laura