Which of the following statements least likely represents the correct treatment of impairment loss?

C is the least likely statement representing the treatment of Impairment loss.

least likely is option c 'It is considered a non-cash item and thus does not affect the cash flowstatement" directly

B. It reduces the net income and carrying amount of assets.

B. It reduces the net income and carrying amount of assets.

Impairment loss is an expense hence reducing the net income when charged in the profit and loss account on the other hand the asset for which its review of impairment test has resulted in the loss will need to be reported in the new value ascertained hence reducing the carrying value of the asset.

My option here is option B...it reduces net income and carrying amount of assets. ......Impairment loss is recognised when the carrying amount of assets are more than the recoverable amount...

A-----------------------------------------------

It is considered a non-cash item and thus does not affect the cash flowstatement.