Accounting for an impairment of long term assets held for use versus intended for disposal, Impairment of assets held for use restoration of any impairment loss is not permitted and they are depreciated based on their new carrying amount and useful life after the loss on impairment is realized, Impairment of assets to be disposed of:1-Assets held for disposal are like inventory, report them at lower of cost or net realizable value (less disposal costs), do not depreciate or amortize assets held for disposal during the periods it holds them, 2-Can write up or down an asset held for disposal in future periods as long as the carrying value after the write up never exceeds the carrying amount of the asset before the impairment, continually revalue them each period, will recover asset thru sale rather than thru operations, 3-Report losses or gains of these impaired assets as part of income from continuing operations not as an extraordinary loss, steps to determine whether there is an Impairment,1-Review events or changes in circumstances for possible Impairment, 2-Perform Recoverability Test: If the sum of expected future cash flows (undiscounted) is less than carrying amount of the asset, a. Fails test (Future net cash flows less than carrying value) Recognize an Impairment Loss, b. No Impairment: (Future net cash flows greater than carrying value, 3-If the recoverability test indicates that an Impairment has occurred then a loss is computed: Impairment Loss is the amount by which the carrying amount exceeds its fair value, fair value is measured based on the market value, if no active market exists then use the present value of expected future cash flows to determine fair value (Carrying Value - Fair Value) = Impairment Loss, Impairment assets held for use: Restoration of any impairment loss is not permitted, based on a new carrying amount and the estimated remaining useful life a depreciated amount per year is calculated, the depreciation expense is recorded and the impairment loss is recognized on the income statement, detailed calculations and accounting by Allen Mursau

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