Borough of Dover ACS Demographic and Housing Estimates; Borough of Dover Selected Social Characteristics; Borough of Dover Selected Economic Characteristics; Borough of Dover Selected Housing Characteristics
Impairment. 1  Reduction in the value of an asset because the asset no longer generates the benefits expected earlier as determined by the company through periodic assessments. This could happen because of changes in market value of the asset, business environment, government regulations, etc.
What is 'Impairment'. Impairment is an accounting principle that describes a permanent reduction in the value of a company's asset, normally a fixed asset. When testing for impairment, the total profit, cash flow or other benefit that's expected to be generated by a specific asset is periodically compared with that same assets book value.