ADM 1340 Lecture Notes - Lecture 15: Asset, Income Statement, Impaired Asset

• School: University of Ottawa
• Department: Administration
• Course: ADM 1340
• Professor: Lamia Chourou

Document Summary

> carrying amount = cost - accumulated depreciation to date. > if carrying amount are bigger than recoverable amount ( then. > recoverable amount = asset"s fair value selling costs of similar assets in an active market. > impairment loss = the carrying amount - recoverable amount. > impairment loss is reported on the inc st as part of pro t from continuing operations e. g, equipment costs ,000 and has accumulated depreciation of ,000. Carrying amount: 90 000 - 54 000 = 36 000. Impairment loss : ca - ra = 6 000 (debit il 6 000, credit accumd 6 000) > ifrs allows us to reverse il, but aspe cannot. Sale of ppe: update depreciation, calculate the carrying amount, calculate the gain (+"ve) or loss (- ve) = (proceeds - carrying amount, record the disposal: Retirement of an asset: e. g, jim retires an equipment that cost ,000.