GREY:NEVDQ - Post by User
Comment by
realcdnon Nov 17, 2021 1:18pm
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Post# 34137023
RE:RE:RE:what is the implication of all this concern about finance
RE:RE:RE:what is the implication of all this concern about financewestcoast1000 wrote: patchh,
I am no accountant. I cannot tell you what an impaired asset means in accounting terms.
My guess is it means they are not depreciating it yet, and it is not running yet, so they treat it as different than other assets. To me it does not signal some scam. Maybe it does for you. The time frame is likely arbitrary. If they started to produce copper in coming months it would no longer be treated as an impaired asset.
An imparied asset infers an asset that has lost value. For example, if an asset that cost a company $100 was later determined to be worth only $10, then the accountants would book an impairment charge of $90. It's similiar to depreciation and is effectively an accellation of depreciation if it is determined that market value of said asset has decreased significantly. This results in an immediate charge (expense) to the income statement.