Real Estate
Impairment of Building (PPE)
Writing down a building's carrying value when its recoverable amount falls below book value.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Impairment Loss (Building) | Expense (+) | 150,000.00 | - |
| Accumulated Impairment (Building) | Contra-Asset (+) | - | 150,000.00 |
💡 Accountant's Note
Under IAS 36, if a building's recoverable amount (higher of fair value less costs to sell, or value in use) falls below its carrying amount, an impairment loss must be recognized.
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