Impairment
In accounting, impairment means writing an asset down because its carrying amount is not recoverable — for long-lived assets, a recoverability test on undiscounted cash flows, then a write-down to fair value.
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- Lexicon
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Authority
This definition follows ASC 360-10-35-17.
Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.
Impairment, in use
Quoted from the document that use the word — what it does to an interface, in the spec's own sentence.
Goodwill and indefinite-lived intangibles are not amortized — they are tested for impairment (US GAAP private companies may elect to amortize goodwill over up to ten years).
Schedules, accruals & roll-forwards — 6. Intangibles and amortization
What it is not called
Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.
- depreciation
- write-off
Nearby in the catalog
No component names this concept outright. These are the ones in its part of the system, which is a weaker claim — but a component nothing links to is a component nobody finds.
Terms this one depends on
Also in Fixed assets & leases
Work with this concept
The calculators that compute it and the ledger payloads that carry it. A definition is where a reader starts; these are where they go next.
Defined in Lexicon. This page is generated from that document, so the two cannot disagree.