Is an asset impairment loss a profit or loss account? Borrowing for growth or lending for growth?

1. The asset impairment loss is a profit and loss account, which is borrowed to increase, 2. The bad debt loss is an asset account, which belongs to the allowance account, and the same as the accumulated depreciation, it is credited when it is accrued, and it belongs to the offset accounts receivable.

3. When the bad debts are actually confirmed, the bad debt provision is debited and the bad debt accounts receivable are credited, indicating that the accounts receivable cannot be obtained, and the accounts receivable are reduced, and the losses are deducted from the bad debt reserves. So it's a bad debt provision is debited and accounts receivable are credited.

Now that the receivables that have done bad debts have been recovered, of course, the opposite entries are made first, and the accounts receivable are restored, so the accounts receivable are debited, the bad debts are credited, and then the entries received in the monetary funds are made.

4. The profit and loss account should be divided into income or expenses, the credit side of the income is the increase, and the debit side of the expense is the increase.

Let's put it simply. Bad debt provision and asset impairment loss are both asset accounts, but they are contra accounts, and the borrowing direction of such accounts is opposite to that of asset classes.

Profit and loss accounts mainly include income, costs, and expenses. Income (e.g., main business income) is borrowed in the opposite direction to assets.

Costs (e.g., main business costs), expenses (e.g., finance expenses) and assets are borrowed in the same direction.

Confirming and transferring the bad debts that are resold means that the bad debts have actually occurred, which means that the money owed to us by others cannot be fully recovered, so the entry is borrowed: bad debt provision.

Credit: Accounts receivable (here you don't have to memorize the direction of borrowing, because the decrease in accounts receivable must be on the credit side).

Conversely, bad debts that have been recognized and resold are now recovered, which means that the money that was thought to be not coming up is now coming up, so it is debited accounts receivable and credited with bad debt provisions.

1. Asset impairment loss refers to the loss caused by the book value of the asset being higher than its recoverable amount. Asset impairment losses and fair value change losses belong to profit and loss accounts, which are both expense accounts, and are borrowed for increase.

2. Profit and loss accounting accounts can be divided into three subcategories: income, expenditure and profit. Expense accounts include cost expenses, tax expenses, expenses, and losses.

3. The provision for bad debts is the contra account of the asset account. The increase or decrease of its lender is exactly the opposite of the asset class account, which can play a role in offsetting.

4. When the receivables that have been recognized for bad debt losses and resold are later recovered in whole or in part, the accounts of "accounts receivable", "notes receivable", "prepaid accounts", "other receivables" and "long-term receivables" shall be debited according to the actual amount recovered; Credit the "bad debt provision" account, while debiting the "bank deposit" and other accounts; Credit accounts such as "accounts receivable".

Bad debt provision is an asset"Accounts receivable"The contra account is a subtraction of accounts receivable, so it goes in the opposite direction to accounts receivable.

Profit and loss accounts.

Whether it is borrowing more or decreasing or borrowing less and increasing the loan, there are the following situations:

1. Income account: main business income.

Other business income, investment income, fair value change gains and losses. It is a decrease in borrowing and increasing loans.

2. Expense accounts: main business costs, other business costs, and asset impairment losses.

Taxes and surcharges, selling expenses, administrative expenses, finance expenses.

Income tax expense. It belongs to borrowing more and reducing loans.

3. Gains directly included in the current profit: non-operating income.

It is a decrease in borrowing and increasing loans.

4. Loss directly included in the current profit: non-operating expenses.

It belongs to borrowing more and reducing loans.

Extended information: Investment is an economic behavior in which a specific economic entity invests a sufficient amount of capital or monetary equivalents in kind into a certain field in a certain period of time in order to obtain income or capital appreciation in the foreseeable period in the future.

Investment is the process of signing an agreement with the other party for a specific purpose, promoting social development, achieving mutual benefit, and transferring funds, such as currency purchase, corporate equity participation, value replacement, etc.

Technically, the word means "the act of putting something somewhere else" (perhaps originally associated with a person's clothing or "dress"). From Finance.

From the point of view, compared with speculation, the investment period is longer, and the hand code is more inclined to obtain some kind of sustainable and stable cash flow in a certain period of time in the future.

Earnings are the accumulation of future earnings.

Investment role: the impact of investment on economic growth.

Investment and economic growth are closely linked. In the field of economic theory, the West and China have a similar view, that is, they believe that economic growth is mainly determined by investment, and investment is the basic driving force of economic growth and a necessary prerequisite for economic growth. The impact of investment on economic growth can be analyzed from factor input and resource allocation.

Investment is a major factor in promoting technological progress.

Investments have a big impact on technological progress. On the one hand, investment is the carrier of technological progress, and the application of any technological achievements must be reflected through some kind of investment activities, which is the link between technology and economy; On the other hand, technology itself is also a structure of investment, and any technological achievement is the product of investing a certain amount of human capital and resources (such as test equipment, etc.). The generation and application of technological progress are inseparable from investment.

Common investment varieties in China:

Property. Many people invest in real estate, and a family buys n suites waiting for appreciation.

Bond. Bonds include treasury bonds, financial bonds, and corporate bonds. This is lower than **, but the return is also low.

Compound interest can be selected to calculate interest. Treasury bonds are not available to many people, and they are known as "gilt bonds" with good reputation, excellent interest rates and low risk. The risk of financial bonds is relatively high, and the company's bonds have the greatest risk and the highest returns.

The debit side of the asset impairment loss is indicated.

Asset impairment lossAsset impairment loss belongs to the expense category in the profit and loss account, which increases on the debit side and decreases on the credit side;

1. This account accounts for the losses caused by the provision for impairment of various assets in accordance with the criteria of asset impairment.

2. This account shall be accounted for in detail according to the items of asset impairment losses.

3. If an enterprise determines the impairment of assets according to the criteria of asset impairment, it shall debit this account according to the amount that should be written down, and credit "provision for bad debts", "provision for decline in the value of inventory", "provision for impairment of long-term equity investment", "provision for impairment of held-to-maturity investment", "provision for impairment of fixed assets", "provision for impairment of construction in progress", "provision for impairment of engineering materials", "provision for impairment of productive biological assets", "provision for impairment of intangible assets", "provision for impairment of goodwill", "provision for impairment", "provision for impairment of goodwill", "provision for impairment of assets", "provision for impairment of intangible assets", "provision for impairment of goodwill", "provision for impairment of assets", "provision for impairment of intangible assets", "provision for impairment of goodwill", "provision for impairment of assets", "provision for impairment of construction in progress", "provision for impairment of engineering materials", "provision for impairment of productive biological assets", "provision for impairment of intangible assets", "provision for impairment of goodwill", "provision for impairment", "provision for impairment Provision for loan losses", "Debt assets - provision for decline in value", "Provision for loss of goods - provision for decline in price" and other accounts.

4. If the value of the relevant assets is restored after the provision for bad debts, inventory depreciation, impairment of held-to-maturity investments, loan losses, etc., the value of the relevant assets shall be debited and credited to this account within the amount of the original provision for impairment and the amount increased by the recovery.

5. At the end of the period, the balance of this account should be transferred to the "profit of the year" account, and there is no balance in this account after the carryover.

Credit impairment loss lending direction.

1. Asset impairment loss is the cost and expense category of profit and loss accounts, with the debit side indicating an increase and the credit side indicating a decrease.

2. Asset impairment loss, if the asset can not bring economic benefits to the enterprise or the economic benefits brought by it are lower than its book value, then the asset cannot be recognized, or the original book value can no longer be recognized, otherwise it does not meet the definition of assets, nor can it reflect the actual value of the assets, and the result will lead to an inflated increase in assets and profits of the enterprise. Therefore, when the recoverable amount of an enterprise is lower than its book value, it indicates that the assets have been impaired, and the enterprise should recognize the impairment loss of the assets and write down the book value of the assets to the recoverable amount.

3. When it occurs, the specific accounting entries are:

Borrow: Asset impairment loss.

Credit: Provision for impairment of fixed assets.

Provision for impairment of construction in progress.

Provision for impairment of intangible assets.

Provision for impairment of goodwill.

Provision for impairment of long-term equity investments.

impairment provisions for biological assets, etc.

4. Once the asset impairment loss is recognized, it shall not be reversed in the accounting period in the future, and it shall not be transferred out until the disposal time.