Asset Impairment

Lease Administrators and Accountants can report asset impairment losses, which decreases the ROU asset value but does not affect the liability. Impairment events are applied at the activation group level, and affect all units within the activation group. The activation group can be split to contain only the affected units.

Note: Asset impairment is currently only supported for standalone and hybrid systems and for ASC 842, IFRS 16, and GASB 87. Asset impairment cannot be entered for non-lease service contracts, short term leases, or low value leases because no assets were created.

If the activation group is classified under IFRS 16 or GASB 87, an asset impairment gain event can be entered to adjust the amount of the impairment loss that was previously recorded (i.e., this event will not reverse the original impairment event).

Warning: If the activation group is classified as ASC 842 operating, no additional events with financial impact (such as reassessments, indexation events, and casualties) can be entered after the impairment, other than an impairment gain (if it is also classified under IFRS 16 or GASB 87) or another impairment loss.

Refer to the following topics for more information:

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