When an impairment of an equity investment that is classified as available for sale occurs for a reason that is judged to be "other than temporary," the investment is written down to its fair value and the amount of the write-down is:

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When an impairment of an equity investment that is classified as available for sale occurs for a reason that is judged to be "other than temporary," the investment is written down to its fair value and the amount of the write-down is included in net income. This is because the impairment is considered to be a realized loss, not just a temporary change in value. Therefore, it directly affects the income statement.

When an Impairment of an Equity Investment That Is Classified