Asset writedowns

A quick question.

I own a Ltd company.

One of the asset types is a land banking investment (stupidly)

The total purchase cost of the 4 plots was £25k all inclusive. (purchased in 2006). It has now been confirmed that the company selling was fraudulent, land can never be developed.

The current balance sheet has £25k as the asset. How can I writedown the value and offset against other gains. There is no available valuation and it is part of a 30 plot scheme.

Obviously there is no index or straightforward way to value the asset. Given it cannot be developed - the value is likely to be very low now (probably £2k for the 4 plots) - its only greenbelt tree plantation land.

I am advised by my accountant a writedown can only be performed against recognisable tradeable assets - surely this cant be true?

What can I do here in accounting terms......

thank you

IAS 36:

"An impairment loss shall be recognised immediately in profit or loss, unless
the asset is carried at revalued amount in accordance with another Standard. Any
impairment loss of a revalued asset shall be treated as a revaluation decrease
in accordance with that other Standard."

And

"An impairment loss on a non-revalued asset is recognised in profit or loss.
However, an impairment loss on a revalued asset is recognised in other
comprehensive income to the extent that the impairment loss does not exceed the
amount in the revaluation surplus for that same asset. Such an impairment loss
on a revalued asset reduces the revaluation surplus for that asset."

So basically, if the above is reliably measureable, then the impairment loss should be recognised immediately in the P&L.

Although, you should clarify this with your accountant. They are probably closer to all the detail and there must be a reason behind their statement (it could be to do with the asset being a "Non-current Assets Held for Sale and Discontinued Operations" or it may be that the asset isn't reliably measurable)...

Best of luck with your income offsetting!