Impairment Loss on Equity Investments
Code: 5330
👁 Views: 119
Account Information
| Financial Statement | Income Statement |
| Normal Balance | Debit |
Definition
Non-operating losses arising from non-temporary decline in value of equity investments (e.g., shares in companies, investments in associates or subsidiaries). Classified under "Other Losses" as not related to core operating activities. Directly reduces investment carrying amount on balance sheet.
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 21 / IAS 16 / IFRS 9 / IAS 36
Multiple Standards
US GAAP
ASC 830 / ASC 360 / ASC 320 / ASC 326 / ASC 350
Multiple Standards
❓ Frequently Asked Questions
Q: What is impairment loss on equity investments?
A: Non-operating losses arising from a non-temporary decline in the value of equity investments (e.g., shares in companies, investments in associates or subsidiaries).
Q: How is this loss measured?
A: Measured as the difference between the investment's carrying amount and its fair value, and the investment is directly reduced on the balance sheet.