The definition of gross money recovery (GCR)’
The recovery of gross cash-gross cash collections expected over the remaining life of the asset. Gross recovery of funds is often expressed as a percentage of book value. Gross recovery of funds will likely appear in the notifications with the elimination of OS occur, especially in situations in which a large number of assets should be liquidated as quickly as possible.
Penetration gross recovery of funds (GCR)’
Gross recovery of funds is more closely associated with the closure of failed banks. In the event of liquidation of the Bank, government and financial institutions, including other banks, will be considered assets to determine how much they cost. In some cases, the money that other companies and institutions willing to pay for the asset will be lower than it is in the books. This difference in elimination may be as a result of the stigma associated with the acquisition of an asset from a failed organization, the increased cost of exploring the assets previously owned by failed banks, and in fact the liquidators are often willing to take less money in order to speed up the process of elimination.
Known example of a gross recovery of funds includes the Federal Corporation on insurance of deposits (FDIC). The FDIC is responsible for the liquidation of the assets has failed, and assistance to banks, and during the 1980s and early 1990s, he was forced to go to several Bank failures. A large amount of work, the result of the FDIC not only to hire more staff and work with private contractors to combat non-performing assets. The contractors were assigned the original purpose of the monetary value of a set of assets and paid fees, as a large part of the carrying amount as possible to restore. The FDIC determined that it was more effective and in the interests of the financial sector, if the assets were liquidated quickly, which led to the need to accept less than the carrying amount of the assets. The FDIC ultimately bought the remaining assets that cannot be sold.
Gross recovery of funds and the book value of
Gross recovery of funds is often expressed as a percentage of book value. The carrying value is the value of an asset according to the account balance. Cost is determined on the basis of the original cost of the asset less depreciation and impairment losses. Traditionally, the book value of a company is its total assets minus intangible assets and liabilities. However, in practice, depending on the source of the calculation, book value may enter goodwill, intangible assets or both. When intangible assets and goodwill was not excluded, this indicator is often defined to be “wealth”.