From the course: Accounting Foundations: Asset Impairment
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Rio Tinto buys a coal mine in Mozambique
From the course: Accounting Foundations: Asset Impairment
Rio Tinto buys a coal mine in Mozambique
- Rio Tinto with headquarter offices in London and Melbourne, is one of the largest mining companies in the world. - Rio Tinto owns the Bingham Canyon Open Pit Copper Mine near our home in Utah. This copper mine is the largest human made hole on the Earth. - So Rio Tinto is a big operation with mining operations all over the world. - [Announcer 1] In it's 2012 financial statements, Rio Tinto reported total impairment losses of $14 billion. - [Announcer 2] These impairment losses completely wiped out Rio Tinto's operating profit for the year. In fact, the company reported an operating loss of $1 billion. - This is quite a come down for a company that reported operating profit of almost $20 billion just two years before. - So what caused this $14 billion dollar impairment loss in 2012? - [Announcer 1] Well, an $11 billion impairment loss was related to Rio Tinto's Canadian aluminum operations, purchased in 2007. And…
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