Week 4 Discussion Depreciation and Impairments 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. Imagine that you are the accounting manager at a manufacturing company being asked about asset impairment. Please respond to the following: • Explain how to determine whether an asset is impaired. Explain how to account for such an impairment. • Be sure to address partial and total impairment in your explanation. • Describe the effect impairments have on the company's financial statements. Be sure to respond to at least one of your classmates' posts.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Week 4 Discussion Depreciation and Impairments
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.
Imagine that you are the accounting manager at a manufacturing company being asked about asset impairment. Please respond to the following:
• Explain how to determine whether an asset is impaired. Explain how to account for such an impairment.
• Be sure to address partial and total impairment in your explanation.
• Describe the effect impairments have on the company's financial statements.
Be sure to respond to at least one of your classmates' posts.
Transcribed Image Text:Week 4 Discussion Depreciation and Impairments 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. Imagine that you are the accounting manager at a manufacturing company being asked about asset impairment. Please respond to the following: • Explain how to determine whether an asset is impaired. Explain how to account for such an impairment. • Be sure to address partial and total impairment in your explanation. • Describe the effect impairments have on the company's financial statements. Be sure to respond to at least one of your classmates' posts.
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