Impairment

All articles in this category pertain to impairment. An impairment is the permanent reduction in the value of an asset as the result of the asset no longer being able to generate income, cash or other benefit equal to or greater than its current book value. Whether physical or intangible, assets should be tested for impairment regularly. Unlike depreciation, which is normal wear and tear, impairment can be caused by a sudden change in a company’s circumstances, such as a natural disaster or a global economic issue.

Learn more about impairment below.