Financial Statements
Impairment
Definition
What is Impairment?
A reduction in an asset's carrying valueThe amount at which an asset or liability appears in financial statements. when expected recoverable value falls below it.
Example in practice
How This Looks in Practice
Weak demand causes the company to impair a factory.
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Related Terms
Financial Statements
Revenue
Income generated from selling goods or services before expenses are deducted.
Financial StatementsSales Growth
The percentage increase or decrease in revenue over a period.
Financial StatementsCost of Goods Sold
Direct costs attributable to goods or services sold during a period.
Financial RatiosGross Margin
Gross profit expressed as a percentage of revenue.