Engro Foods Limited (EFOODS): Impairment on EFOODS stake seems unlikely – By Insight Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">After the 56% price correction in 2017, concerns have been raised amongst investors that ENGRO might book an impairment charge on EFOODS stake</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">To recall, post transfer of control to FrieslandCampina, ENGRO categorized EFOODS as an associate (previously recorded as subsidiary at PKR10/share) and measured its remaining 39.9% holding at estimated Fair Value of PKR102/share, after adjusting for loss of control.</span></li><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">ENGRO accounts for the investment in associates using the equity method. Accounting standards require periodic reviews of equity method investments for impairment and if the f...