Business in general, and the banks, real estate and auto sectors in particular, likely face more damage to their underlying assets amid doubts about the global recovery, a survey showed on January 11. International accounting firm Ernst and Young said a survey of some 170 financial specialists from several countries found that 47 percent believed asset impairments identified over the past two years were lower than expected.

On that basis, companies, especially in the three sectors named, would likely have to take more impairments, especially since the recovery looked so uncertain, Ernst and Young said.

"More than half of the respondents were unconvinced that the global recovery is under way," it said. "Interestingly, lenders were notably more pessimistic about the state of recovery than other stakeholders."

Some 47 percent of those surveyed said they felt the global recovery was underway but 24 percent did not and 29 percent were uncertain, it said.

"Most believe that the level of impairments to date are below expectations, and that the real estate, banking and capital markets, and automotive sectors are the most likely to experience further impairments," it added.

Ernst and Young called on management to be open about impairment costs so as to ensure shareholder confidence in their company.

Copyright Agence France-Presse, 2010