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Double entry for recording impairment loss?

What are the accounting entries to be posted in the case of an impairment loss?
asked Dec 11, 2012 in IAS 36 - Impairment of Assets by anonymous
recategorized Jan 13, 2013 by Mysio

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
answered Jan 27, 2013 by AcMac IFRS Senior (4,170 points)
edited Dec 13, 2013 by Mysio
+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)
answered Dec 16, 2012 by Tina IFRS Guru (10,810 points)
edited Dec 13, 2013 by Mysio
Yes its correct!
+1 vote
Dr - Impairment expense (P&L)
Cr - Asset  (B/S)
answered Dec 26, 2012 by AndyK IFRS Senior (3,850 points)
edited Dec 13, 2013 by Mysio
0 votes
Dr - Impairment Charge (P&L Expense a/c)
Cr - Provision for Impairment losses (B/S)
answered May 20, 2013 by Mysio IFRS Guru (15,010 points)

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