keep_running
New member
- Jun 18, 2026
- 0
- 0
They claim that an impairment loss on a long lived asset will operating income and net income, if the asset is still in use and not ready for sale (which makes sense).
However, they claim this impairment loss is unlikely to affect taxes payable for the company. Wouldn’t taxes payable decrease for the firm, since the operating income is decrease by the amount of the impairment loss, which would result in a certain amount for a tax shield (to eventually decrease taxes payable)?
However, they claim this impairment loss is unlikely to affect taxes payable for the company. Wouldn’t taxes payable decrease for the firm, since the operating income is decrease by the amount of the impairment loss, which would result in a certain amount for a tax shield (to eventually decrease taxes payable)?