Other Than Temporary Impairment (OTTI)

When market value of an investment is less than its book value or carrying value, it may be impaired. Impairment can be considered a temporary impairment or other than temporary impairment. The investment is deemed an OTTI when full recovery cannot be reasonably expected in its allotted timeframe and its book value should be written down. The allotted timeframe will depend on the intent of the investment (example: sell the security immediately or hold to maturity).

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