Is it necessary to book an impairment charge on company demonstrator (or employee use cars) and press cars when we are not certain of the NRV at the time we activate it as a demo? We are being told by audit that we need to reflect the fact that the use of the vehicle will result in a lower NRV in the end, which is often the case. We do allow for this anticipated reduction in the selling price through what we refer to as a "Special Discount", which is a reduction in the selling price which is above the line and not an impairment charge which is below the line and not attributable to that specific asset.
