Pick a company that had an impairment of their PP&E - and explain why it happened...

Pick a company that had an impairment of their PP&E - and explain why it happened - be specific.

Amazon, Apple, Samsung, .....

Expert Solution

During the financial year of 2017, Nestle in its consolidated financial statements has recognized an impairment loss of CHF209 million on its Property, Plant and Equipment. The company stated that impairment of property, plant, and equipment arose mainly from the plans to optimize industrial manufacturing capacities and in order to achieve this objective, the company decided to close and sell inefficient production facilities (mainly in relation to Nestle Skin Health). Since a continuous loss in a segment (owing to the result of poor economic performance than expected) is an indicator for impairment, Nestle has decided to analyze the indicators and computed both Net Selling Price and Value in Use for the property, plant and equipment. The issues that triggered the recognition of impairment as stated by Nestle are:

unfavorable developments in business under competitive pressure, and
severe economic slowdown in a market

ekkarill92 answered 2 years ago

AAA corp. had the following PP&E values on Dec. 31, 2018. Cost &n

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10. Describe the relation between Gross PP&E, Net PP&E, and depreciation. 11. How are stocks categorized...

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Does this company has impairment and if it does what is the amount of impairment?

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This year ABC Company reported net property, plant, and equipment (PP&E) of $17,607 after having reported...

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