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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 NameTypeDebit ($)Credit ($)
Impairment Loss (ROU)Expense (+)12,000.00-
Right-of-Use AssetAsset (-)-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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