The balance-sheet value of an asset or liability, representing the amount at which it is reported on the financial statements.
A method for accounting for bond premiums or discounts.
Impairment is an accounting principle that outlines the process of reducing the book value of an asset when its fair market value drops below the asset's carrying amount on the balance sheet. It is a critical concept in financial reporting that ensures that the value of assets is not overstated in an organization's balance sheet.
Impairment refers to the reduction in the recoverable amount of a fixed asset or goodwill below its carrying amount, often due to obsolescence, damage, or market value decline.
An impairment review is a critical process conducted by entities to assess whether the carrying amount of a fixed asset or goodwill may not be recoverable due to certain events or changes in circumstances.
