asset impairment

Asset impairment is depreciation. It deals with the impairment of assets.

Assets are the assets that are carried as assets in the balance sheets, i.e. buildings, car fleet, machinery, computers, storage systems, inventories, semi-finished products, etc. Impairment is about the reduction in value of these assets. For this impairment, there are international rules that ensure comparative valuation and recoverability. In Germany, there is depreciation for this purpose.

Asset impairment ensures the recoverability of assets and offers correction options if assets have to suffer a higher impairment, namely through higher depreciation.