Write down an asset
To Write down: is an accounting term for the reduction in the book value of an asset when its fair market value (FMV) has fallen below the carrying book value, and thus becomes an impaired asset.
If an asset's impairment has been greater than the accumulated depreciation, you can write down the asset to correct the assets' depreciable basis & value.
To write down an asset proceed as above but select Write down in the tools drop down menu.
When the write-down is carried out:
- The depreciation plan is updated.
- The depreciable basis, depreciable value & book value of the asset are updated.
- A journal is automatically created in Briox accounting using the accounts from the Asset Type assigned to the asset.
The journal uses:
- The impairment account in Debit
- The accumulated impairment account in Credit