Accounting entries of fixed assets impairment reserve
Provision for impairment of fixed assets:
Debit: Asset impairment loss
Loan: Fixed assets impairment reserve
The following entries can be made for the disposal of fixed assets:
Debit: liquidation of fixed assets
accumulated depreciation
Impairment of fixed assets
Loans: fixed assets
General liquidation net profit and loss:
After the cleaning is completed, it belongs to the normal processing loss during production and operation.
Debit: Non-operating expenses-disposal of losses of non-current assets
Loan: liquidation of fixed assets
Losses caused by abnormal reasons such as natural disasters.
Borrow: non-operating expenses-very loss
Loan: liquidation of fixed assets
Otherwise, do non-operating income.
Entries for impairment provision of intangible assets
Debit: Asset impairment loss
Loan: provision for impairment of intangible assets
Overview of impairment provision for intangible assets
On the balance sheet date, if the recoverable amount of intangible assets is lower than its book value and there are signs of possible impairment, the enterprise shall write down the book value of intangible assets to the recoverable amount, and the written-down amount shall be recognized as impairment loss, included in the current profit and loss, and the corresponding impairment reserve shall be withdrawn at the same time.
Once the provision for impairment of intangible assets is withdrawn, it cannot be reversed in future periods.
Intangible assets refer to identifiable non-monetary assets that have no physical form and are owned or controlled by enterprises.
Intangible assets mainly include patents, copyrights, non-patented technologies, trademarks, concessions and land use rights.