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Impairment of Right-of-Use (ROU) Asset
Writing down the value of a leased office or equipment if its utility has decreased (e.g., leaving an office early).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Impairment Loss (ROU) | Expense (+) | 12,000.00 | - |
| Right-of-Use Asset | Asset (-) | - | 12,000.00 |
💡 Accountant's Note
If a leased space is no longer useful (common during downsizes), you must test the ROU asset for impairment and write it down to its recoverable amount.
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