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Carrying Value of FA is more than its Realisable value.The company has to provide for the loss in its books, without reducing the value of FA. Entry, true?

FA means Fixed Asset. What can be the probable entry for this transaction?

IAS Financial Accounting IFRS Fixed Assets Depreciation
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Question added by Deleted user
Date Posted: 2013/12/06
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Khalid Noor
by Khalid Noor , Accounting Manager , FedEx

Whenever the realisable/recoverable value of an assets is below its carrying value, this condition in accounting language is called impairment. In such case the asset value shall be reduced by the impairment loss, after incorporating the below entry:

 

Impairment loss                                   Dr

Accumulated impairment loss          Cr

 

The asssets shall be reported in balance sheet at net of any depreciation and impairment loss.

Sambra Kanebpal Kanebpal
by Sambra Kanebpal Kanebpal , supevisor , alshaya

not tue i agree with rashad moursi 

ORWENYO SUSAN RABARA
by ORWENYO SUSAN RABARA , GUARD , TRANSGUARD GROUP LLC

our company i changing their scope of business and heading towards different business,so we are extremely sorry to inform that we might not be able to provide the service of such type in future bit can assist if need is there from local vendors.

Zeeshan Ehtisham
by Zeeshan Ehtisham , Head of FP&A and Business Control , Tanmiah Food Group

Asset can't be carried above the recoverable amount

Rashad Moursi
by Rashad Moursi , Finance Director & Business Development, International Business Transformer Owners Repr. - Hotels , Investment and financial

Not true, FA shuled be reduced by impairment oof loss. 

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