The McMillan Shakespeare Limited (ASX: MMS) share price isn't having a great end to the week.
In afternoon trade the salary packaging specialist has seen its shares drop almost 2.5% to $14.58.
Why have its shares fallen?
This morning the company advised that it expects to recognise a non-cash asset impairment of $15.3 million after tax in its FY 2017 results which will be released on August 23.
This relates to the carrying value of intangibles for the warranty and insurance business which forms part of its Retail Financial Services segment.
As the expected asset impairment is a non-cash item, the company intends to add it back to its statutory NPAT for the purpose of calculating its underlying NPATA
Management expects to announce FY 2017 underlying NPATA of $87.2 million, which will be flat on FY 2016's result.