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.
At the end of its useful life, the net book value of an asset should approximately equal its salvage value. Impairment is a situation where the market value of an asset is less than its net book value, in which case you are to write down the remaining net book value of the asset to its market value. Thus, an impairment charge can have a sudden downward impact on the net book value of an asset.