Impaired Asset

In accounting, impaired assets are those whose carrying values exceed the highest amounts actually recoverable. Companies are required to mark down the carrying amount to the recoverable amount and take an impairment loss in the P&L. If the causes of impairment are resolved and the asset is revalued to its original carrying value, companies can book a gain (with the exception of goodwill, which cannot be revalued). Assets subject to mark down under IAS 36 include intangible assets that have indefinite useful lives, intangibles not yet available for use, and goodwill acquired in a corporate merger.