Impairment

1. Financial reporting. A reduction in the recoverable amount of a fixed asset or goodwill below its carrying amount.

2. The related accounting adjustment required to reduce the carrying amount of the asset in the balance sheet - to the new lower recoverable amount - and to recognise an impairment loss.

3. More generally, any weakening, damage or reduction in value.

See also

• Fixed assets
• FRS 11
• Goodwill