In this journal entry the goodwill which is an intangible asset on the balance sheet of the company ABC will be reduced. Journal entry for recording the impairment is the debit to the loss account or to expense account with the corresponding credit to an underlying asset. Fixed Asset Accounting Made Simple Netsuite You need to follow AS 28 -impairment of fixed assets for this purpose and journal entry will be- Profit and loss account. . An impairment loss is recognized through a journal entry that debits Loss on Impairment debits the assets Accumulated Depreciation and credits the Asset to reflect its new lower value. The estimated recoverable amount of the machine is now 120000 the depreciation that would be charged for the asset this financial year is 16000. To provision for impairment loss account. This is an impairment loss. Asset is carried at cost model. In this case the company ABC needs to make the fixed asset impa