Depreciation expense is related to assets that have useful lives and are actively used in business operations. CPAs need to understand why impairment happens to depreciated assets. As the accounting manager at a manufacturing company:
- Explain how to:
- Determine whether an asset is impaired.
- Account for the asset’s impairment.
- Address partial and total impairment in your explanation.
- Describe the effect impairments have on the company’s financial statements