Impairment Computation
Hi,
We are doing Fixed Assets Impairment and found below Impairment computation:
Impairment Computation
Carrying Cost = Cost – (Accum. Depreciation + Current period depreciation) – Previous impairment exp.
Impairment Loss = Carrying Cost – Net Fair Value
Issue here is that the above formula does not include Salvage Value .
Is there a way we can include Salvage Value on the Impairment computation?
Thank you very much for the help.