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Thread: Writing Off VS Impairment

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    Writing Off VS Impairment

    Morning,

    What is the accounting difference between these concepts?
    1. Writing off a inter-company loan
    2. Impairing a inter-company loan
    3. Derecognition of loan balance?

    When are you allowed to use which?

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    Hi Krimpie

    IAS 36 concerns impairment of assets and attempts to state them at their net recoverable amount.

    Writing off an inter-company loan is when it is clear that it is non-recoverable, like a bad debt.

    IAS 39 concerns derecognition and is somewhat complicated. Best you work through this document.

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    Dave A (24-Apr-14)

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    Quote Originally Posted by CLIVE-TRIANGLE View Post
    Hi Krimpie

    IAS 36 concerns impairment of assets and attempts to state them at their net recoverable amount.

    Writing off an inter-company loan is when it is clear that it is non-recoverable, like a bad debt.

    IAS 39 concerns derecognition and is somewhat complicated. Best you work through this document.
    Thanks Clive, will start working through it

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