AS 28

Simplified Accounting Standard 28 - AS 28 – Impairment of Assets According to Accounting standard 28 (AS 28) , when a businessman has utilized any asset and after it becoming useless , then it is the duty to calculate the difference between its sale value and its current carrying cost and this will be loss and these assets are become impaired and this impairment loss should mention in the statements of company . In this AS, there is no need to recognize the impaired loss of inventories, construction contracts, financial assets and deferred tax assets because, these are already mentioned in other accounting standards . Formula for Calculating Impaired loss =Carrying Amount of Asset – Net Selling Price Carrying amount is that amount which can be recognized in balance sheet after deducting any accumulated depreciation. This impairment loss should be recognized as an expense in statement of profit and loss. Related : Steps of Calculating Impairment Loss of Goodwill