What is impairment of an asset? How is it treated in a accounting?

Impairment of an asset occurs when the carrying amount of an asset on the balance sheet exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. Impairment indicates that the asset’s value has declined significantly and may not be recoverable in…...

To get access, please buy CA Interview Question Bank
Scroll to Top