Asset Impairment
/ˈæsɛt ɪmˈpɛərmənt/
Definitions
- (n.) A reduction in the recoverable value of a company’s asset below its carrying amount on the balance sheet, recognized to reflect diminished future economic benefits.
The company recorded an asset impairment loss after the market value of its property declined significantly.
Forms
- asset impairment
Related terms
See also
Commentary
In legal and financial drafting, clearly distinguishing asset impairment from routine depreciation is crucial, as impairment requires evidence of value decline beyond normal usage or obsolescence.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.