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Asset Impairments definitions

컨트롤 버튼이 '내비게이션' 모드로 변경되었습니다.
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  • Impairment
    A reduction in an asset's book value when expected future cash flows fall below its carrying amount on the balance sheet.
  • Net Book Value
    The value of an asset as shown on the balance sheet, calculated as original cost minus accumulated depreciation or amortization.
  • Future Cash Flows
    Estimated monetary benefits expected to be received from an asset in future periods.
  • Fair Value
    The price that would be received to sell an asset in an orderly transaction between market participants at the measurement date.
  • Impairment Loss
    The amount by which the net book value of an asset exceeds its fair value, recognized as a loss on the income statement.
  • Rule of Conservatism
    An accounting principle requiring losses to be recognized promptly, while gains are only recognized when realized.
  • Journal Entry
    A formal accounting record documenting the debit and credit effects of a financial transaction.
  • Loss on Impairment
    An income statement item reflecting the decrease in value of an asset due to impairment.
  • Asset Write-Down
    The process of reducing the carrying amount of an asset to its fair value after impairment.
  • Balance Sheet
    A financial statement presenting a company's assets, liabilities, and equity at a specific point in time.
  • Income Statement
    A financial report showing a company's revenues, expenses, and profits or losses over a period.
  • Tangible Assets
    Physical resources owned by a company, such as equipment or buildings, subject to impairment testing.
  • Intangible Assets
    Non-physical resources like patents or trademarks, which must also be tested for impairment.
  • Fair Market Value
    An asset's estimated worth in an open and competitive market, often used interchangeably with fair value.
  • Debit
    An accounting entry that increases assets or expenses and decreases liabilities or equity.