Impairment Loss

The impairment loss is calculated as the difference between the NBV on the event date and the recoverable value (entered by the user). The loss is distributed over the remainder of the remaining lease term.

Note: If the activation group is classified as ASC 842 operating, entering an asset impairment changes the depreciation method to straight-line depreciation.

To enter an impairment loss:

  1. Open the required activation group and create an event. Use the regular event procedure, but complete the following information in the Create Event pop-up:
    1. Set the Modification Reason to "Asset Impairment - Loss". The pop-up displays the fields specific to this event, per accounting standard.
    2. In the NBV on Event Date field, enter your own calculated value or click on the NBV: Beginning of the Period or the Generated NBV on Event Date field to use that value. Note that the value used must be between (or equal to) these two values.
    3. Enter the Recoverable Amount or the Recoverable (%). The other field is automatically calculated, as well as the Impairment Loss Amount and Impairment Loss (%).

      Note: The Recoverable Amount must be less than or equal to the NBV on Event Date value. If there is a Salvage Value, the Recoverable Amount must be greater than or equal to this value.

    4. If there is more than one accounting standard, select the tab for the other accounting standard and fill in the same fields.
  2. At any time, click Delta to review all the changes. You can use the Select Revision drop-down to view the details from previous revisions.
  3. Click Generate Schedules to view the change in the schedules.
  4. Click Send to Assessment, which will also automatically regenerate the schedules.
  5. Click Journals to view the recognition journal entries that will be posted for this event.
  6. Click Approve and review the changes in the Event Modifications Summary pop-up. Click Approve Modifications to approve the changes.
    • Send the draft back for changes by clicking Rework.
  7. Click Confirm Classification.
  8. Click Activate to make this draft the new active version of the activation group, or click Rework to send the draft back for changes.

Nakisa Lease Accounting Suite 2026.R1 © 2026

 

 

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