A
AccountingClueless
Guest
Any assistance with the question below will be greatly appreciated
Suppose you are the accounting manager of a division of a large firm and your compensation is partly based on meetinga net income target.
In the current year it seems unlikely that your division will meet its target. You have some property, plant and equipment that have been idle for a while but have not yet written off. What incencentives do you have to write its value off during the current year and if you do write it off, how will it impact your future ability to meet the income targets for your divison?
Suppose you are the accounting manager of a division of a large firm and your compensation is partly based on meetinga net income target.
In the current year it seems unlikely that your division will meet its target. You have some property, plant and equipment that have been idle for a while but have not yet written off. What incencentives do you have to write its value off during the current year and if you do write it off, how will it impact your future ability to meet the income targets for your divison?