Account Information

Financial Statement Income Statement
Normal Balance Debit

Definition

Losses arising from retirement of a fixed asset (e.g., damaged machinery, abandoned building) without sale, when the carrying amount is not recoverable. Classified as non-operating loss under "Other Losses".

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 21 / IAS 16 / IFRS 9 / IAS 36 Multiple Standards
US GAAP ASC 830 / ASC 360 / ASC 320 / ASC 326 / ASC 350 Multiple Standards

❓ Frequently Asked Questions

Q: How is a damaged fixed asset written off?

A: Dr. Accumulated Depreciation (total depreciation to write-off date), Dr. Loss on Fixed Assets Write-off (remaining carrying amount), Cr. Fixed Asset (historical cost).