Impairment of intangible Asset

Quick Summary
This discussion examines the impairment of an intangible asset, specifically a patent. It details how a health hazard identified in the fifth year led to an impairment loss. The conversation then delves into whether a further impairment loss or a recovery should be recorded at the end of the sixth year, considering changes in the asset's fair value and future cash flows, and how to calculate the adjusted carrying value.

Actually 5 years have already passed
So remaining life is only 5 years
at the end of a fifth year carrying value was 76500 and it was impaired by 14986 taking it to 62370 now the remaining life is 5 years so carrying value after amortisation at the end of 6th year is 62370 - 62370/5 that is 49896 and fair value is 48600 again it is impaired by 1296

Ok, this page two impaired my view of real purchase amount- 153000/10=15,300 per annum. 

six years accumulated amortisation = that * 6. 

Because amortisation starts from year 1 (acquired year) 

Its *5 coz at the end of fifth year it was amortized
so for 6th year it could not be same .
what i did, is it wrong?
If yes can u please share ur mail id so that i can directly share you the question pic ?

           Amortisation  Accumulated amortisation

 

Year 1 15300.                  0

year 2 15300                  15300*2

year 3 15300                    15390*3

year 4 15300                     15300*4

year 5 15300                      15300*5

year 6 15300                     15300*6

year 7 15300                      “

year 8 15300                       “

year 9 15300                       “

year 10 15300.                    “

If you add all five years or multiply 15300*5 , you get the same result. You have to subtract that amount annually. For example NBV at year 5= 1530000-76500 (15300*5)= 76500. Or you can subtract for each year. Impairment happened in year five= 76500- impairment amount= carry forward NBV. In other words it’s a short cut to subtract accumulated depreciation 

https://www.calculator.net/depreciation-calculator.H T M L?cmethod=straight&ccost=153000&csalvage=0&cyears=10&cfactor=2&cround=yes&cpartical=no&cparticalmethod=halfmonth&startday=09%2F28%2F2020&caymonth=1&cayday=1&printit=0&x=93&y=31

use this calculator. Just input 153000, 0, 10 and press calculate button. You will know what is depreciation schedule

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details