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How to impair/write-down the right of use asset
How to impair/write-down the right of use asset

This document will show how to impair the right of use asset in Cradle

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Written by Support
Updated over a week ago

However, if you do decide to write the right of use asset (ROU asset) down to $0, this is how you do it in Cradle:

1) Find out the ROU value on the date of impairment: In this case, let's say it's January 1, 2021. To do this, run the balance sheet report on January 1, 2021:

2) Write down the ROU asset in the Modifications tab (ensure the number input is negative):

3) Check if the ROU Asset value is now $0

Other places to corroborate the write down are the Overview and Journals tab. For example, here are the journals:

In this example, we write the right of use asset to $0, but you can write it down to whatever applicable value.

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