The problem of financial management of certified public accountants: Why should the pre-tax interest expense be a financial expense that deducts the impairment loss of financial assets, investment inc

The problem of financial management of certified public accountants: Why should the pre-tax interest expense be a financial expense that deducts the impairment loss of financial assets, investment income and changes in fair value? The interest expense of traditional income statement considers the interest expense of liabilities, but does not consider the profit and loss of financial assets. Interest expense in the management income statement = profit and loss of financial activities = interest of financial liabilities-profit and loss of financial assets = interest expense in the traditional income statement-income from changes in the fair value of financial assets-investment income of financial assets+impairment loss of financial assets, and the last three items also belong to profit and loss of financial activities because of financial assets.

You can understand it this way, because financial gains and losses are profit and loss subjects, which are obtained by deducting expenses from income, and because interest income is generally less than interest expenses, the sum of the two is negative, that is, financial gains and losses before tax are reflected in negative interest expenses.