Accounting for IGCSE & O level - Accounting Procedures (Section 13 - No. 20)

What is the accounting treatment if the value of an asset goes down?

Debit Accumulated Depreciation, Credit the Asset account

Debit Asset account, Credit Depreciation Expense

Debit Depreciation Expense, Credit Accumulated Depreciation

Debit Impairment Loss, Credit the Asset account

The impairment loss should be used to record a drop in the value of the asset.