This decline in value, or impairment, may result from several causes, including damage, obsolescence due to advances in technology or changes in the legal code. It may also result from a decrease in the expected cash flow the equipment will bring to the business.
[header] How to calculate asset impairments [title] Learn the definition. [step] Asset impairment occurs when the fair market value of a fixed asset falls below the carrying value of the asset and the carrying value is not recoverable. It can happen to property, equipment, vehicles or other fixed assets.