Impairment and Disposal

Record an impairment using the loss amount, effective date, recoverable amount, and evidence. Reversals cannot exceed the remaining impairment balance or the carrying amount that would have existed without impairment.

Prerequisites: finance has approved the measurement basis, the effective date is in an open fiscal period, supporting evidence is attached, and all required loss, accumulated impairment, proceeds, gain, or loss mappings are valid.

Classifying an asset as held for disposal measures it at the lower of carrying amount and fair value less costs to sell. Any reduction is posted as impairment, and future depreciation stops. Disposal then clears cost, accumulated depreciation and impairment, records proceeds, and posts the resulting gain or loss. Disposed assets are read-only except for notes and supporting documents.

Holding an asset for disposal is not the same as completing disposal. The held state stops depreciation after measurement; final disposal additionally requires proceeds, method, date, and gain-or-loss recognition.