Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

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?

user-image
Question ajoutée par Utilisateur supprimé
Date de publication: 2013/12/06
Khalid Noor
par 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
par Sambra Kanebpal Kanebpal , supevisor , alshaya

not tue i agree with rashad moursi 

ORWENYO SUSAN RABARA
par 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
par Zeeshan Ehtisham , Head of FP&A and Business Control , Tanmiah Food Group

Asset can't be carried above the recoverable amount

Rashad Moursi
par 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. 

More Questions Like This