Writing Off VS Impairment

[krimpie]

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?

[CLIVE-TRIANGLE]

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.

[krimpie]

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