Neeeeeeeeeeeeeeeeeeeeeeeeeeed help! should i use deducted, debited or credited in the following sentence?
the difference between the recoverable amount and the book value of the long-term investment should be deducted(debited to/credited to) from the long-term investment impairment provision.
- 3 weeks ago
So if your recoverable amount is greater than your book value it would be a debit (gain) to your LTIIP (abbreviated).
If your recoverable amount is less than your book value it would be a credit (loss) to your LTIIP.
Using deducted as an alternative only works here if the recoverable amount is less than your book value. The reason is your book value is the original value, whatever the recoverable amount is will get subtracted from the book value. If your recoverable amount appreciated over time it would add to the LTIIP. Most typically you lose value over time so the recoverable amount is usually less than the original book value and you adjust with a credit (loss to asset in this case) of the LTIIP.
- bluebellbkkLv 73 weeks ago
Seeing the word 'from' follows immediately, it's hard to see how you could write 'debited to' or 'credited to'.
- Bill BLv 63 weeks ago
Deducted works fine.