Impairment effects on the income statement

I’m reading up on this today – will get back to you later @tim 🙂

@tim I agree with @artyeasel. Impairment’s effects on net income, disregarding time effects should net out. But I’m not sure if CFAI will ever ask a question like that!

ROA and ROE will increase going forward (as your assets have decreased) as well.

Man, you guys are quick, I only just saw this – not keeping up with my usual omnipresence! :-O

To answer a part of your question – impairment is effectively immediate ‘forced depreciation’ of a particular asset. So yes, the net income differences does balance out assuming no discounting.