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

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

Written by Samson Wai

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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