TechInvest would make the following accounting entries: In 2026, Software Innovations experienced an unexpected downturn and reported a net loss of $1 million while forgoing its dividend.

A basic principle of accounting is that net operating losses are subtracted from retained earnings and thus from capital. If the losses are big enough, capital goes negative, your liabilities exceed ...

The transparency involved in impairment, while sometimes revealing uncomfortable truths about past decisions—by definition ... Under U.S. accounting standards, impairment losses cannot be ...