- This topic has 3 replies, 2 voices, and was last updated 7 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Hi, if an asset suffers an impairment loss, is the depreciation charge for the period in which the impairment occurred calculated on the new amount or the old amount?
Depreciation is calculated at the end of each year so the calculation will be based on the impaired amount
The real question is whether it should be calculated at the original rate on the pre-impaired amount and then at the new rate on the post-impaired amount
In fact it makes no sense to calculate on the pre-impaired figure … but it also makes little or no difference because both the impairment and the depreciation will normally be charged to the same expense heading
OK?
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Impairment and Depreciation’ is closed to new replies.