RE:Re: Valid reason for the chargeummmmm.... not sure I follow your train of thought..
It's NOT Good to "Save" paying Taxes because Your COSTS/EXPENSES so High. This reduces your Profits..... And this is what you pay taxes on.
Now is you BS and writedown the asset by more than it really goes down in value.... Then Yes, you "Save" in paying taxes..... But in the end, when you sell, you've written it way way down and buyers going to get it cheap. If not, they you will have a HUGE GAIN ALL AT ONCE and end up ultimately paying MORE TAX.
All just my opinion/view/thinking
soundandfury wrote: Cve said they would need to spend this amount about every 5 years..........lets assume the refinery has a lifespan of 50 years ......so that is 10 times what they spebd this year plus inflation.........this would theoretically cause the current value of this asset to be impaired by that amount......presumably $1.9 billion.........but the taxes saved by this impairment will be huge over time