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Impairment Loss on Goodwill
Recognizing a permanent decrease in the value of goodwill recorded during an acquisition.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Loss on Impairment | Expense (+) | 12,000.00 | - |
| Goodwill | Asset (-) | - | 12,000.00 |
💡 Accountant's Note
Under IFRS/GAAP, goodwill is not amortized; instead, it is tested for impairment annually. If its value drops, it must be written down immediately.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.