Hi
Please could you clarify the Journal Entry for the Impairment of an Asset as below:
Historical Cost 1st Jan 20X5: 100
Accumulated Depreciation: 20 (10 x 2 years)
Recoverable amount 1st Jan 20X7: 75
No previous revaluations or impairments have occurred.
Some google searches are saying:
DR Impairment Expense 5
DR Accumulated Depreciation 20
CR Non Current Asset 25
Some are saying
DR Impairment Expense 5
CR Accumulated Impairment 5
Thanking you in Advance!