I am currently writing an essay regarding the tax treatment of impairment of assets in various countries across Europe.
I would appreciate it if someone answers the following question:
Do the tax authorities in the UK allow the deduction of loss incurred following the recognition of an impairment?
For example, entity owns a mechine and the mechine fair value is 50$, as for today.
The mechine Carrying amount is 100$.
According to IAS 36, the entity should low the carrying amount and write a loss in her books of 100-50=50$.
Can 50 be deducted from the firm income for taxation?
In addition, please refer me to a formal source (a law or a court ruling) regarding this issue.
Thanks in advance,