the journal entry for an impairment loss when the carrying value exceeds the recoverable amt?

Dr. Impairment loss
Cr. Accumulated depreciation

After the asset has been written down the adjusted Book value of the asset (Original cost minus accumulated depreciation) becomes its new cost basis and future depreciation is calculated based on this new cost basis.

This is a new concept suggested by you. Can you please quote from relevant IAS?

From what appears to be taught by standard texts is that the impairment review is to be carried out every year and that the impairment losses are accumulated in an account that is separate from accumulated depreciation. The annual depreciation is different from impairment losses.

Can you please quote the relevant standard for calculating depreciation on the new cost basis?

Regarding your first comment you are right impairment loss should be accumulated in a separate account. (Accumulated impairment loss) not accumulated depreciation.


Regarding the new cost basis of calculating depreciation the relevant standards for that are as follows:

IFRS 36 Paragraph 63 states that after recognition of an impairment loss, the depreciation charge for the asset shall be adjusted in future periods to allocate the assets revised carrying amounts on a systematic basis over its remaining useful life.

FASB 144 Paragraph 15 states that if an impairment loss is recognized, the adjusted carrying amount of a long-lived asset shall be its new cost basis. For a depreciable long-lived asset, the new cost basis shall be depreciated (amortized) over the remaining useful life of that asset.