The impairment provision for non-current assets (fixed assets, intangible assets, long-term equity investment, investment real estate measured by cost model) cannot be reversed even if the future value rises during the holding period.
However, financial assets are special. Although held-to-maturity investments and available-for-sale financial assets are illiquid assets, if their values rebound, their impairment reserves can be reversed within the allowable range. ?
The above provision for impairment of non-current assets cannot be reversed, because it is unlikely that its value will rebound, and it usually belongs to permanent impairment; On the other hand, considering the requirements of the stability of accounting information, in order to avoid confirming asset revaluation and manipulating profits, it is stipulated that it shall not be reversed. Before the disposal of assets, the asset impairment provision accrued in the previous period cannot be reversed.
Extended data:
Impairment of fixed assets
Fixed assets impairment reserve regularly compares the recoverable amount with the book value from the perspective of "assets are expected future economic benefits".
When the recoverable amount is lower than the book value, it is confirmed that the fixed assets have been impaired, and it is necessary to make provision for impairment of fixed assets to adjust the book value of fixed assets so that the book value can truly and objectively reflect the actual value of assets in the current market.
The value impairment marked by the provision for impairment of fixed assets is mainly caused by changes in the external environment or internal factors of enterprises, which has great uncertainty and needs to rely on the professional judgment of accountants in practice.
If the accountants' professional quality is not high or their professional judgment level is poor, there may be a big gap between the provision for impairment of fixed assets and the actual impairment of fixed assets. It has a great influence on the proportion of expenses included in accumulated depreciation.
Different from the depreciation of fixed assets, the provision for impairment of fixed assets is not accrued on a monthly basis and cannot be included in related costs or current expenses according to purposes. Its accounting is usually carried out at the end of the year or at the end of the designated accounting period according to the actual situation. In the absence of evidence that impairment has occurred, accounting treatment is generally not carried out.
Therefore, the impairment loss in different accounting periods is not necessarily related to the passage of time or normal use. However, when making provision for impairment, it must be related to depreciation.
Depreciation of fixed assets is based on the balance after deducting the estimated net salvage value from the original value of fixed assets, and depreciation is accrued within the depreciation period of the estimated service life.
If depreciation reserves have been accrued for fixed assets, the depreciation rate and depreciation amount shall be recalculated and determined according to the book value of fixed assets (the original price of fixed assets minus accumulated depreciation and accrued depreciation reserves) and the useful life; Whether the value of fixed assets with impairment provision is restored.
Then the depreciation rate and depreciation amount should be recalculated according to the book value and service life of the recovered fixed assets. However, when the depreciation amount of fixed assets is adjusted due to the provision for impairment of fixed assets, the accumulated depreciation accrued before will not be adjusted.
At the end of the period, the provision for impairment of fixed assets shall be measured according to the principle of lower book value or recoverable amount, and the provision for impairment of fixed assets shall be accrued for the difference between recoverable amount and book value.
The recoverable amount of fixed assets is determined according to the relevant information around the accounting date, which is a subjective accounting estimate and not very accurate. At the same time, the amount of fixed assets impairment reserve accrued at different times is uncertain.
Theoretically speaking, drawing impairment reserve according to the current market value of fixed assets should make the book value of fixed assets closer to reality. However, the current market price of fixed assets is also an evaluation result, especially under the premise of non-new fixed assets, its accuracy cannot be guaranteed.
Only after the evaluation by a special evaluation agency can the result be more accurate, which is not feasible in accounting practice. Therefore, daily provision for impairment still cannot guarantee that the value of impaired fixed assets is very close to reality, but only makes the book value of fixed assets close to reality.
The Measures for Pre-tax Deduction of Enterprise Income Tax stipulates that any form of reserve drawn by an enterprise in accordance with the financial accounting system shall not be deducted before enterprise income tax. Therefore, no matter what kind of asset impairment reserve policy an enterprise adopts, it will not be confirmed in tax laws and regulations to avoid the impact on income tax.
Therefore, the provision for impairment of fixed assets accrued by enterprises shall not be deducted before tax, which has no direct impact on the income tax amount. However, the provision for impairment of fixed assets accrued by enterprises will affect the change of depreciation amount, leading to the difference between accounting profit and taxable income, resulting in the difference of tax payment time, especially when the value of fixed assets with impairment provision is restored, the difference is more complicated.
Therefore, enterprises should make corresponding tax adjustments when filing tax returns. If the tax-related financial adjustment is inaccurate, it will affect the accounting profit and taxable income.
Baidu Encyclopedia-Fixed Assets Impairment Reserve