If your company no longer expects to recover the cost of the lease through operation, or disposal, the right-of-use asset can be impaired. This is only possible after initial assessment.
Example:
Your company rents a construction machine which is not in use anymore. But you nevertheless must pay for the rent.
How to impair a leased asset
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Go to Contracts, find the contract in the list and open it via Edit.
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Scroll down to the Lease section and click Add impairment.
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Add a Description why you impair the leased asset.
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Enter the impairment Date and the Amount to impair.
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Click Add impairment.
Impairment has been added. In case you at a later point of time want to reverse the impairment again, read the instruction below.
How to reverse an impairment
You can revers an impairment in case the impaired object is if value for your company again.
Example:
A construction company has impaired a machine as it was not used (because of for few customers). Now, the company situation has improved, and many orders came in. This makes it necessary to "reactivate" the impaired machine - and the company must include the machine's value in the balance again This is done by reversing the former impairment.
Follow the steps above and check Reverse impairment. Note that the maximum amount cannot be higher than it would have been if the standard impairment track was followed.