asset impairment

asset impairment definition - finance
Impairment occurs when the sum of the expected cash flows from the asset is less than the book value of the asset. Accounting practices require that long-term assets be evaluated for impairment. If a reduction is made in the carrying value because of impairment, it is recorded as a loss.

Comments


Do you have more to add? Sign in to share your linguistic knowledge or observation.

Connect with Facebook