Accounting of Impairment of Assets & Depreciation on it

impairment loss is calculated as the difference between carrying amount and the recovrable value of an asset. carrying amount is the value at which assets are carried on in financial statements. on the other hand recovarable value is higher of i) value in use and ii) net seling price.  value in ese= PV of future cash flows of such assets. net selling price= disposal value-cost of such disposal.

imapirment loss should be assessed in each balance sheet date. if there is indications that the assets may be impaired and these indications are also providing evidence that the remamining useful life or the residual value of the assets needs review/adjusdtment, the dep or amortisation should be reviewed as per AS 6 or AS 26 even if impairment loss is not provided for in the books...

after providing for impairment loss dep should be adjusted for future period to allocate revised carrying amount less its residuial value over its remaining useful lie.

hope u have got uor ans....