Final answer:
Impairment for an asset held for use is recorded in the balance sheet by reducing the asset's book value and recognizing an impairment expense on the income statement when the asset's carrying amount exceeds its recoverable amount.
Step-by-step explanation:
Impairment for an asset held for use is recorded on a company's financial statements within the balance sheet. When a long-lived asset is subject to an impairment, the impairment loss is recorded by reducing the book value of the asset on the balance sheet and recognizing an impairment expense on the income statement. The process typically involves comparing the carrying amount of the asset to its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. If the carrying amount exceeds the recoverable amount, an impairment loss is recognized. This loss reflects that the asset can no longer generate future economic benefits equal to its recorded value.