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Asset Impairment

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Asset impairment

Asset Impairment
The state in which an asset has a market value less than its value listed on the company's records, especially when the value is unlikely to recover. The cash flow an impaired asset will generate is less than the difference between its market value and its book value. Impaired assets include bad debt, obsolete equipment and, most especially, goodwill. A company must write off its asset impairment each year.


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Operating income before asset impairment decreased 42% from $13,424,000 in 2008 to $7,779,000 in 2009.
reported net income in the fourth quarter of $599,000, or 6 cents a share, which includes a 3-cents-a-share adjustment for an operating asset impairment charge.
ABSTRACT The asset impairment accounting system has been introduced throughout the world since the mid-1990s.
 
 
 
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