An appropriate journal entry to recognise an impairment loss under the cost model is:

Question

Quizplus · Accepted Answer

Under the cost model, an impairment loss is recognised by debiting the impairment loss account and crediting the accumulated depreciation and impairment losses account. This reduces the carrying amount of the asset to its recoverable amount. Option A is incorrect because it credits the impairment loss account instead of the accumulated impairment losses account. Option B is irrelevant as it relates to the revaluation model. Option D is also incorrect as revenue and impairment loss are not related.

An Appropriate Journal Entry to Recognise an Impairment Loss Under