What is the difference between depreciation and impairment, when impairment is more suitable?

Question added by Muhammad Sohail Anwar , Finance Manager , The Food Concepts
Date Posted: 2014/11/22

Upvote (1) Views (7) Followers (3) Answers (2) Report Question

by Satish Koottala , Accountant , City Diamond Contracting LLC

Depreciation is writing down the value of an asset, for us to get the right value on some particular day.

Impairement is writing down the value to the fair value of the asset for which it will generate in future.

by Qaisar Ali , Financial Analyst , Saudi Public Transport Company

Depreciation has to be done annually and impairment take place only when we get impairment indications....

The impairment loss of the asset?
Top Answer: This is a vague question. Impairment loss is the amount ... See More

Answers (10)
There was a question about land depreciation as a fixed asset I called to answer it
Top Answer: Land and buildings have to be treated differently as far as depreciation is concerned. Practically, the l ... See More

Answers (12)
Difference between Depreciation, Accumulated Depreciation and APC? What is APC?
Top Answer: In accountancy, depreciation refers to two aspects of the same concept: The decrease in value of assets ... See More

Answers (37)
Which one of the following methods of depreciation will result in the lowest reported net income in the early life of a depreciable asset?
Top Answer: Option D is correct. Sum of the years digits depreciation method. See More

Answers (4)

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.