Oil & Gas
Impairment Test — Producing Field CGU (IAS 36)
Recording an impairment charge when the recoverable amount of a producing field falls below book value.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Impairment Loss — Oil & Gas Properties | Expense (+) | 150,000,000.00 | - |
| Oil & Gas Properties (Net Book Value) | Asset (-) | - | 150,000,000.00 |
💡 Accountant's Note
Under IAS 36, each producing field is a Cash Generating Unit (CGU). When oil prices fall or reserves are revised down, the recoverable amount (higher of VIU and FVLCTS) may fall below the carrying amount, triggering impairment.
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