Impairement losses

Question

How do I treat impairment loss on trade receivables  in the accounts and the tax implication.

Answer 1

impairment losses are generally charged to P&L as an expense. As far as tax computations are concerned, it may be allowed or disallowed in arriving at the taxable profit depending on the tax rules of your jurisdiction/country. I think most of the countries allow it as a tax deductible expense.

Comments

Thanks. I appreciate.