What is the difference between asset impairment and inventory depreciation reserve?

Inventory refers to raw materials, inventory goods, etc.

Assets refer to fixed assets and intangible assets.

Responder: Black Marigold-Manager Level 4 3-6 09:0 1

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This answer is a wry smile! It is suspected that this company (Black Calendula) may not even know that "inventory" is an asset.

Cut the crap and let me tell you my opinion:

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Asset impairment includes inventory depreciation (impairment), that is to say, inventory depreciation belongs to asset impairment.

Asset impairment mainly includes: receivables impairment (bad debt provision), inventory depreciation provision, long-term equity investment impairment provision, fixed assets impairment provision, intangible assets impairment provision, etc.

In accounting treatment:

1. Impairment reserve If it is determined that assets are impaired, this account will be debited according to the amount to be written down, and bad debt reserve, inventory depreciation reserve, long-term equity investment impairment reserve, held-to-maturity investment impairment reserve, fixed assets impairment reserve, construction in progress-impairment reserve and engineering materials-impairment reserve will be credited.

2. Turn back and debit the bad debt reserve, inventory depreciation reserve, held-to-maturity investment impairment reserve, loan loss reserve, debt-paying assets-depreciation reserve, loss-making materials-depreciation reserve and other subjects, and credit this account.

Among them, it is worth mentioning that the new accounting standards in 2006 changed the practice that fixed assets, intangible assets and long-term equity investments can be reversed after provision for impairment. Once the impairment losses of these three assets are confirmed, they cannot be reversed in the future accounting period, which eliminates the possibility of some enterprises adjusting their profits by withdrawing secret reserves and limits the artificial fluctuation of profits.

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