Impairment

Impairment,

Definition of Impairment:

  1. Impairment is commonly used to describe a drastic reduction in the recoverable amount of a fixed asset. Impairment may occur when there is a change in legal or economic circumstances surrounding a company or a casualty loss from unforeseen devastation.

  2. The state or fact of being impaired, especially in a specified faculty.

  3. In accounting, impairment describes a permanent reduction in the value of a company's asset, typically a fixed asset or an intangible asset. When testing an asset for impairment, the total profit, cash flow, or other benefit expected to be generated by that specific asset is periodically compared with its current book value. If it is determined that the book value of the asset exceeds the future cash flow or benefit of the asset, the difference between the two is written off and the value of the asset declines on the company's balance sheet.

  4. A loss in revenue due to economical changes.

Synonyms of Impairment

Adulteration, Attrition, Curtailment, Cut, Cutting, Damage, Debilitation, Decrease, Decrement, Defectibility, Defectiveness, Deficiency, Depletion, Depreciation, Derogation, Deterioration, Detraction, Detriment, Diminution, Dip, Disadvantage, Disparagement, Drawback, Enfeeblement, Erroneousness, Extraction, Fallibility, Faultiness, Flaw, Handicap, Harm, Hurt, Immaturity, Imperfection, Impurity, Inaccuracy, Inadequacy, Inadequateness, Incompleteness, Inexactitude, Inexactness, Injury, Lack, Lessening, Liability, Loss, Loss of ground, Marring, Mediocrity, Mischief, Patchiness, Prejudice, Reduction, Remission, Retraction, Retrenchment, Shortage, Shortcoming, Shortening, Shrinkage, Sketchiness, Step backward, Truncation, Undermining, Undevelopment, Unevenness, Unperfectedness, Unsoundness, Vitiation, Want, Weakening, Worsening

How to use Impairment in a sentence?

  1. Impairment can occur as the result of an unusual or one-time event, such as a change in legal or economic conditions, change in consumer demands, or damage that impacts an asset.
  2. If impairment is confirmed as a result of testing, an impairment loss should be recorded.
  3. A degree of physical or mental impairment.
  4. Impairment exists when an asset's fair value is less than its carrying value on the balance sheet.
  5. An impairment loss records an expense in the current period which appears on the income statement and simultaneously reduces the value of the impaired asset on the balance sheet.
  6. Assets should be tested for impairment regularly to prevent overstatement on the balance sheet.

Meaning of Impairment & Impairment Definition

Impairment,

Definition of Impairment:

  • Decreased physical or mental function as a result of injury or illness. Anxiety can be temporary or permanent.

  • In accounting, depreciation refers to a permanent decrease in the value of a business asset, usually a fixed asset or immovable asset. When an asset defect is assessed, the asset's total revenue, cash flow, or other expected benefits are regularly compared to its current value. If it is determined that the carrying value of the asset exceeds the future cash flow or income of the asset, a distinction is made between the two and the value of the asset is reduced on the company's balance sheet.

    • Depreciation can be caused by unusual or one-time events, such as changes in legal or economic circumstances, changes in consumer claims, or damage to assets.
    • Assets should be tested regularly for faulty losses to avoid balance sheet overhaul.
    • Error occurs when the fair value of an asset falls on the balance sheet below the amount it carries.
    • If the test results confirm a price reduction, the price reduction should be recorded.
    • The writing includes an expense for the current period that appears in the income statement and, at the same time, reduces the value of the defective asset in the balance sheet.

Meanings of Impairment

  1. Circumstances or realities change, especially in some faculties.

Sentences of Impairment

  1. Degree of physical or mental disability