how to calculate impairment loss for land

Recorded impairment losses can not be recovered on the balance sheet until the asset is sold. An asset’s value may never be restated to reflect appreciation in value; restating assets due to permanent impairment is possible, however, in certain situations. To learn more about recording journal entries for asset impairment, read more from our Financial co-author. the impairment loss) which should be charged as an expense to the statement of comprehensive income. When an intangible asset’s impairment reverses and value is regained, the increase in value is recorded as a gain on the income statement and reduction to accumulated impairment loss on the balance sheet, up to the amount of impairment loss recorded in prior periods. Therefore, the recoverable amount is $750,000. You need to assess at the end of each reporting period whether there is any indication that an impairment loss recognized in prior periods for an asset (other than goodwill) may no longer exist or may have decreased. The Asset is recorded as per the revalued amount. This loss is known as asset impairment. A long‐lived asset’s carrying amount is generally computed as follows: This hierarchy has three levels. -An entity applies IAS 36 to determine whether the assets may be impaired after the revaluation requirements have been applied. impairment test and compute impairment losses (if any) on the asset pursuant to HKAS 36 “Impairment of Assets”. Record a journal entry for the impairment loss. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/d\/d6\/Calculate-Asset-Impairments-Step-1.jpg\/v4-460px-Calculate-Asset-Impairments-Step-1.jpg","bigUrl":"\/images\/thumb\/d\/d6\/Calculate-Asset-Impairments-Step-1.jpg\/aid1539366-v4-728px-Calculate-Asset-Impairments-Step-1.jpg","smallWidth":460,"smallHeight":345,"bigWidth":"728","bigHeight":"546","licensing":"