Impairment

A write-down recorded when an asset’s carrying value exceeds its recoverable value. Goodwill impairments are closely watched as an admission that an acquisition underperformed the price paid.

Go deeper

This term comes up constantly in accounting interviews and on the desk.

IB technical questions guide

Related Accounting terms

Go further than reading

The written material is free. These are the ways to get it applied to your own work.

Browse the full glossary — 150+ finance recruiting and technical terms, in plain English.