Impaired Asset

Corporate Finance Financial Statements Financial Terms Dictionary

Contents

Assets should be regularly reviewed for impairment to ensure they are not overstated on the balance sheet.

Assets that are most likely to be impaired include accounts receivable as well as long-term assets such as intangible assets and property, plant and equipment.
When the value of an impaired asset is written off in the balance sheet, a loss is also recognized in the income statement.