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Impairment Loss on Goodwill

Recognizing a permanent decrease in the value of goodwill recorded during an acquisition.

Account NameTypeDebit ($)Credit ($)
Loss on ImpairmentExpense (+)12,000.00-
GoodwillAsset (-)-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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