Asset Impairment Loss Calculator

Calculate asset impairment losses with our comprehensive calculator designed for accounting professionals and businesses. This tool helps you determine impairment losses according to GAAP and IFRS standards by comparing carrying amounts to recoverable amounts. Whether you're dealing with goodwill, intangible assets, or long-lived assets, this calculator provides the calculations and journal entries needed for proper financial reporting.

Recoverable Amount: Higher of fair value less costs to sell and value in use. Fair Value: Market-based valuation. Value in Use: Present value of future cash flows.

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About Asset Impairment Loss Calculator

The Asset Impairment Loss Calculator is an essential accounting tool that helps businesses and accounting professionals calculate impairment losses in accordance with Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). Asset impairment occurs when the carrying amount of an asset exceeds its recoverable amount, requiring businesses to recognize a loss and adjust the asset's book value to reflect its true economic value.

This calculator handles various types of asset impairments including goodwill impairment, intangible asset impairment, and long-lived asset impairment. It considers factors such as fair value, value in use, disposal costs, and future cash flows to determine the recoverable amount. The tool provides not only the impairment loss calculation but also the proper journal entries needed to record the impairment in your financial statements, ensuring compliance with accounting standards.

Whether you're a CPA conducting financial audits, a business owner evaluating asset values, or a financial analyst assessing company financial health, understanding and calculating impairment losses is crucial for accurate financial reporting. This calculator helps you make informed decisions about asset valuations, identify potential financial risks, and maintain compliance with accounting regulations while providing transparency to stakeholders about asset values.