Real Estate
Impairment of Right-of-Use Asset
Writing down an ROU asset when the leased space is no longer needed (e.g., vacated early).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Impairment Loss (ROU Asset) | Expense (+) | 80,000.00 | - |
| Right-of-Use Asset | Asset (-) | - | 80,000.00 |
💡 Accountant's Note
If a leased premises is vacated but the lease obligation continues, the ROU asset must be tested for impairment and written down to its recoverable amount.
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