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.


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BREAKING DOWN '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.

  1. Capital

    1) Financial assets or the financial value of assets, such as ...
  2. Impaired Asset

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  3. Onerous Contract

    A type of contract where the costs involved with fulfilling the ...
  4. Impaired Credit

    A deterioration in the creditworthiness of an individual or entity. ...
  5. EBITA

    Earnings before interest, taxes and amortization. To calculate ...
  6. Qualitative Analysis

    Securities analysis that uses subjective judgment based on nonquantifiable ...
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