Topic: Hi all, I have a question regarding the FA impairment loss @枫下论坛 The Rolia Forum

Hi all, I have a question regarding the FA impairment loss -feeling123456(新手上路); 2015-1-18 {403} (#83426@41)
We've done the impairment test for our FA, and deterimied the amount for the impairment loss. The entry is DR asset impairment loss (P&L), and CR accumulated impairment loss (BS), my quesiton here is how I should group this accumulated impairment loss. It should goes to FA section, accumulated deprecation setction or a non-current asset section(other than the two mentioned above).
Thanks in advance.

Technically, it should be net against the asset account directly (before the accumulated depreciation). -cactus101(贤锡饭); 2015-1-22 {399} (#83442@41)
You could have directly credit it to the asset account. If you set up an accumulated impairment loss account to keep track the amount of loss recognized (so that you may reverse it if the asset value goes up in the future), it's not technically wrong. You should check your accounting policy for FA to see which model is used by your company, since it could be credited to an equity account as well.

Thanks for your comments. I have created an accumulated impairment loss to off set the asset value which is grouped in the accumulated depreciation section. Since this is a non operating loss, so I debited it in other income or expense section. -feeling123456(新手上路); 2015-1-23 (#83452@41)