Question

What is the impairment of fixed assets?

Answer 1

An asset impairment emerges when there is an unexpected drop in the reasonable worth of an asset beneath its recorded expenses/cost. To account for impaired assets the difference between the impairment amount and the recorded fair value of the asset must be written off.

Also see:

• Difference Between Assets and Liabilities
• What Are Current Assets?
• What Are Non Current Assets?