Impairment

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DEFINITION of 'Impairment'

1. A reduction in a company's stated capital.

2. The total capital that is less than the par value of the company's capital stock.

INVESTOPEDIA EXPLAINS 'Impairment'

1. This is usually reduced because of poorly estimated losses or gains.

2. Impairment can be used in many contexts. Whatever the situation, impairment is bad for the company.

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