Financial Statements

Impairment

Definition

What is Impairment?

A reduction in an asset's carrying value when expected recoverable value falls below it.

Example in practice

Weak demand causes the company to impair a factory.

Keep learning

Income generated from selling goods or services before expenses are deducted.

The percentage increase or decrease in revenue over a period.

Direct costs attributable to goods or services sold during a period.

Gross profit expressed as a percentage of revenue.

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