Definition

A reduction in the reported value of an asset on the balance sheet, typically triggered by impairment testing that reveals the asset's carrying amount exceeds its recoverable amount. Goodwill and other intangible asset write-downs often signal that the expected future benefits from a prior acquisition or investment have not materialised.

Related Terms

Waterfall Distribution Weighted Average Cost of Capital (WACC) Premium Weighted Average Remaining Useful Life (WARUL) With-and-Without Method Workforce Analytics

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