Depreciation, impairment or provision: what is the difference in Morocco?

Three entries the Moroccan chart files under one word: provision. Two questions are still enough to choose between them.

By BelloCommerce

September 6, 2026

The confusion is genuine, and the Moroccan chart of accounts contributes to it: it calls “provision for impairment” what others simply call impairment. Two questions are nonetheless enough to settle it: is this an asset losing value or a future obligation, and was the loss planned or suffered?

Comparing three accounting treatments at year end.

The choice in five points

Depreciation is planned. It spreads the cost of a fixed asset over its useful life, on a schedule set in advance.
Impairment is suffered. It records an unplanned loss of value on an asset, and it is reversible.
A provision for risks and charges sits on the liabilities side: a probable future obligation, not an asset losing value.
The Moroccan chart calls the last two “provisions”, which explains the confusion but changes none of the logic.
Depreciation is irreversible; impairment and provisions are reversible. That is the fastest test.

1. The two questions that settle it

Before looking for an account, place the transaction. The first question is about what is affected, the second about the nature of the loss.

Is this an asset you hold that is losing value, or an obligation towards a third party? An asset leads to depreciation or impairment; an obligation leads to a provision for risks and charges.
If it is an asset: was the loss expected from acquisition, through use and the passing of time? If yes, depreciation. If not, impairment.
Check reversibility: depreciation is never reversed, while impairment and provisions are released when their cause disappears.
Finally check deductibility, which follows its own conditions and never flows from the accounting classification alone.

The same asset can carry both depreciation and impairment. A machine depreciates over its useful life, and is impaired on top of that if an unforeseen event — damage, sudden obsolescence, a production line stopped — pushes its value below its carrying amount.

2. The decision table

The three treatments compared on the criteria that genuinely separate them, rather than on their similar names.

Criterion	Depreciation	Impairment	Provision for risks and charges
What is concerned	A depreciable fixed asset	An asset, fixed or current	A future obligation
Nature of the loss	Planned, spread over time	Recorded, unplanned	Probable, not yet realised
Reversible?	No	Yes, by release	Yes, by release
Position on the balance sheet	Reducing assets	Reducing assets	On liabilities
Common example	Equipment, furniture, fittings	Impaired stock, doubtful customer	Litigation, warranty given

Land illustrates the boundary well: it is not depreciated, since it is not consumed by use, but it can be impaired if its value collapses. A non-depreciable asset is not a sheltered one.

3. Why the Moroccan vocabulary muddies the trail

In the Moroccan chart of accounts, the impairment of an asset is recorded under the heading “provision for impairment”. The word provision therefore covers two distinct accounting realities, and that is the source of nearly every classification error.

Provision for impairment: This is an asset impairment. It reduces an asset line — stock, receivables, fixed assets — and is released if the value recovers.
Provision for risks and charges: This is a true liability provision. It records a probable obligation towards a third party: litigation, a warranty, a restructuring.
The simple test: Ask yourself whether you owe something to someone. If yes, it belongs on liabilities. If not, it is an asset value that has fallen.
Practical consequence: A doubtful customer is an asset impairment, despite being called a provision. A pending lawsuit is a provision for risks.

Holding on to this distinction avoids the classic error of putting on the liabilities side what should have reduced assets, which inflates the balance sheet total on both sides at once.

Accounting classification does not decide deductibility

This is the most expensive confusion of all. A correctly calculated depreciation charge can be partly added back if the asset exceeds a tax ceiling; a perfectly justified receivable impairment can be rejected for want of legal action; a provision for risks can be refused if the risk is not specified precisely enough. Accounting classification and the tax test are two distinct steps, in that order.

4. Where to go next, depending on your case

Each treatment has its own calculation rules, deduction conditions and pitfalls, developed separately.

You are spreading the cost of a durable asset: That is depreciation: see the guide to accounting depreciation for the depreciable base and the useful life.
You are recording a loss of value on a receivable: That is an asset impairment: see doubtful customers, with its VAT-exclusive base and its twelve-month condition.
You are anticipating a future cost or risk: That is a liability provision: see accounting provisions and their second, tax test.
You are hesitating between a cost and a fixed asset: The question comes earlier: see asset or expense before choosing any treatment.

Placing the transaction correctly takes a minute and saves a reclassification at the next close. It is the one step where an error propagates into every calculation that follows.

BelloPOS

All the features

Mistakes to avoid

Depreciating land, which is not consumed by use.
Putting on liabilities an impairment that should reduce assets.
Treating a doubtful customer as a provision for risks.
Releasing depreciation the way an impairment is released.
Drawing a tax conclusion from the accounting classification.
Provisioning a risk without specifying its nature or an approximate amount.

Frequently asked questions

What is the difference in one sentence?

Depreciation records a planned, spread loss of value on a durable asset; impairment records a suffered, reversible loss of value on an asset; a provision for risks and charges records a probable future obligation towards a third party.

Can an asset be both depreciated and impaired?

Yes. Depreciation follows the planned schedule; impairment is added if an unforeseen event pushes the asset’s value below its carrying amount after depreciation.

Why does the Moroccan chart speak of provisions in both cases?

Because it uses the term “provision for impairment” for losses of asset value, alongside “provisions for risks and charges” on liabilities. The vocabulary is shared; the accounting logic is not.

Can an impairment be cancelled?

Yes, through a release, when the cause disappears and the value recovers. That is precisely what separates it from depreciation, which is never reversed.

Does BelloPOS make these distinctions?

BelloPOS Pro keeps fixed asset tracking and accounting journals, which carry the recorded depreciation. Classifying a situation between impairment and provision remains a closing decision, taken with your accountant.

What to take away

Do not start from the name of the account; start from two questions: asset or obligation, planned loss or suffered loss. Those two answers identify the treatment unambiguously, whatever label the chart of accounts applies. The tax test comes afterwards, never instead.