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What are the accounting entries to be posted in the case of an impairment loss?
in IAS 36 - Impairment of Assets by
recategorized by

4 Answers

+1 vote
 
Best answer
Impairment loss is recognized immediately in P&L  (unless the asset is carried at revalued amount) Thus, entries would be:

Dr  Impairment losses a/c (P&L account)
Cr  Asset account a/c (Balance sheet account)

If the asset is carried at revalued amount, impairment loss is treated as a reduction in revaluation gain.

Dr  Revaluation surplus (B/S account)
Cr  Asset account a/c (B/S account)

Reference: IAS 36 - Impairment of Assets
by Level 2 Member (4.2k points)
edited by
+1 vote
It can be accounted for as follows in books:

DR-Impairment loss a/c (P&L account)
CR-Asset Account/Provision for impairment loss  a/c (Balance sheet account)
by Level 5 Member (11.6k points)
edited by
Yes its correct!
+1 vote
Dr - Impairment expense (P&L)
Cr - Asset  (B/S)
by Level 2 Member (3.9k points)
edited by
0 votes
Dr - Impairment Charge (P&L Expense a/c)
Cr - Provision for Impairment losses (B/S)
by Level 5 Member (25.1k points)


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