Can anyone explain difference between write off of assets and Impariment of assets as per as-28?
My understanding is writeoff is not equal to Impariment of assets.
2 Replies
Brijesh
(Chartered Accountant)
(56 Points)
Replied 15 September 2011
Term Write off is used in connection with reduction of value of assets/Misc. expenses in the balance Sheet. Impairment of assets means the sale value of asset or the revenue generating capacity is reduced. Both terms have same meaning. But when we use term write off it means that there is no chance of write back. But with reference to AS28 test of impairment is to be applied at a reasonable intervals. There may ne a situation where the asset impaired earlier can be appreciated again keeping in view its market value or the cash generating capacity.
CA SOURAV KUMAR GANDHI
(B.com (H), CA )
(133 Points)
Replied 15 September 2011
i do agree with brijesh sir
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