What Are Impaired Assets In Accounting
Impaired Assets are those Assets which have less fair market value than carrying value / book value shown on the B alance Sheet when we test these Types / Kinds of Assets for Impairment . Examples are Fixed Assets / N on Current Assets , Intangible Asset such as Goodwill and Current Asset like Accounts Receivable . Due to Physical Usage, Obsolescence, etc. the recoverable amount or fair market value of assets decreases as compare to carrying value so Impairment Loss is recognized in Income Statement in such accounting in which it is incurred. Impairment Assets Journal Entry In case of Impairment of fixed assets, the Journal Entry would be as shown below: Impairment Loss a/c XXX ...