Section 5
Impairment of Assets
Book
Version 3
By Boundless
By Boundless
Boundless Accounting
Accounting
by Boundless
3 concepts
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Impairment Recognition
An impairment loss is recognized and accrued through a journal entry to record and reevaluate the asset's value.
![Thumbnail](../../../../../../figures.boundless-cdn.com/10874/square/800px-unbomb.jpeg)
Impairment Measurement
Business assets that have suffered a loss in value are given two tests to measure and recognize the amount of the loss.
![Thumbnail](../../../../../../figures.boundless-cdn.com/10879/square/800px-thumbnail.jpeg)
Loss Restoration
Fixed asset values can be revised to reflect an increase or decrease in value; upward revisions can recover earlier impairment losses.