Asset impairment loss includes inventory impairment loss, long-term equity investment impairment loss, real estate impairment loss, bad debt impairment loss, intangible assets impairment loss, investment real estate impairment loss and so on.
1. Inventory impairment loss: refers to the economic loss caused by an enterprise's inventory goods not being sold within the specified time or at the expected price. This may be due to improper procedures in the process of procurement, production and sales, market depression and economic recession, which leads to the inability to sell inventory in time. Therefore, enterprises need to evaluate the inventory, and make provision for impairment of products that can no longer be sold and can not recover their estimated original value.
2. Impairment loss of long-term equity investment: refers to the decline of enterprise value due to equity investment in other companies, including the decline of stock price, the decline of the performance of the invested company and the decline of the overall value of the enterprise. Enterprises need to evaluate the investment value and risk in time, and if the situation is serious, they need to depreciate the investment.
3. Real estate impairment loss: Real estate (such as land and factory buildings) is an important asset held by enterprises, and its value fluctuates with market changes. If land ownership disputes or the shrinking commercial housing market lead to difficulties in real estate sales, then enterprises need to accrue real estate impairment losses in financial statements.
4. Impairment loss of bad debts: Bad debts refer to loans receivable that borrowers are unable or unwilling to repay, usually referring to overdue or bankrupt borrowers. With the soaring bad debt rate, the proportion of such losses in corporate liabilities is also increasing, and enterprises need to make appropriate bad debt reserves or bad debt impairment losses on a regular basis or as needed.
5. Impairment loss of intangible assets: Intangible assets refer to assets owned by enterprises that have an impact on their tangible assets and future earnings, such as trademarks and patents. The value of intangible assets may change with market changes, technological progress and other factors, such as the decline of corporate brand awareness and the expiration of patents. , the enterprise needs to make provision for impairment.
6. Impairment loss of investment real estate: investment real estate refers to real estate assets used for capital appreciation and/or rental purposes, and sometimes the price fluctuates greatly. If the market value of investment real estate declines, enterprises need to carry out impairment treatment and reflect the change of market value by adjusting the book value of assets.
The meaning of asset impairment
Asset impairment refers to a part of assets held by an enterprise, the value of which has dropped sharply or suffered losses due to changes in the business environment or market situation, so it needs to be depreciated and included in the profit and loss. Asset impairment is different from asset depreciation. Depreciation is a deferred expense calculated according to its expected service life and estimated net salvage value, while asset impairment is a non-deferred and actually incurred loss expense.