An appropriate journal entry to recognise an impairment loss under the cost model is:
A) DR Accumulated impairment losses, CR Impairment loss.
B) DR Accumulated impairment losses, CR Asset revaluation (equity).
C) DR Impairment loss, CR Accumulated depreciation and impairment losses.
D) DR Revenue, CR Impairment loss.

Question

Quizplus · Accepted Answer

Under the cost model, an impairment loss is recognized by debiting the impairment loss account and crediting the accumulated depreciation and impairment losses account to reflect the reduction in the asset's carrying amount.

An Appropriate Journal Entry to Recognise an Impairment Loss Under