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Partial Impairment of Goodwill
Writing down a portion of Goodwill because a subsidiary's fair value has decreased (IAS 36).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Loss on Impairment (Goodwill) | Expense (+) | 10,000.00 | - |
| Goodwill | Asset (-) | - | 10,000.00 |
💡 Accountant's Note
Goodwill is tested annually. If the business unit is worth less than its carrying amount, the excess must be written off as a permanent loss. You cannot reverse this later.
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