Fixed Asset Accountant Mock Interview
Master 30 Fixed Asset Accountant interview questions covering depreciation, capitalization policies, and reconciliations.
Question 14 of 30
What is an impairment of a fixed asset and what is the accounting treatment?
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Brian Schuchart is a CPA and Senior Finance Business Partner. His professional experience includes senior management roles with NBC Sports, Virtual Health, and the Children's Hospital of Philadephia.
An asset impairment occurs when there is a drop in the fair value of an asset below its recorded cost. The accounting treatment is to write off the difference between the fair value and the recorded cost of the asset. Impairment occurs when the decline in value is not recoverable.
Brian Schuchart is a CPA and Senior Finance Business Partner. His professional experience includes senior management roles with NBC Sports, Virtual Health, and the Children's Hospital of Philadephia.
"Impairment of fixed assets occurs when the fair value of owned fixed assets drop below the carrying amount of the asset on the balance sheet. When this happens, a write-off of the difference is recorded. It is important to periodically assess whether material fixed assets are impaired to the point where the value cannot be recovered."
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