What is the difference between amortisation and impairment?????
When an asset is amortised????
When an asset is Impaired?????
Can u explain this question for me, sir, plz
Ask the Tutor ACCA FR
Intangible asset
Amortisation is the intangible's equivalent of the tangible's depreciation
It's intended to amortise an intangible over its estimated useful life (like depreciation does for a tangible asset)
Impairment is a one-off (or two-off, or three-off!) exercise when the directors determine that an asset's carrying value exceeds its recoverable amount
I suppose that you could equate it with under-depreciation or under-amortisation but its cause by recognising the fact that, because of a change in circumstances, the asset's carrying value is too great
OK?
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