Overview

permanent diminution in value


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Quick Reference

A fall in the value of an asset that is unlikely to be reversed. The fixed asset must be shown in the balance sheet at the reduced amount, which will be the estimated recoverable amount. A provision has to be made through the profit and loss account; if this is subsequently found to be no longer required, it should be written back to the profit and loss account. Compare temporary diminution in value.

Subjects: Accounting.


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