The loan loss reserve account belongs to the asset reserve account, and the prepared assets should be deducted and then reflected on the balance sheet. If loan loss provision is withdrawn, there will be corresponding asset impairment provision subjects. If a loss finally occurs, a part of the loan loss reserve will be written off, indicating that the assets have been depreciated. The asset impairment loss belongs to the profit and loss category, which is reflected in the income statement and is a deduction of operating income. Therefore, the loan loss reserve account affects the income statement through the asset impairment loss account.