Impairment
AccountingA write-down of a long-lived asset or goodwill.
In plain terms
A large one in a new CEO’s first year usually means assets were overstated before.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Carrying amount
AccountingAlso called: Book carrying amount
The amount at which an asset is stated on the balance sheet after deducting accumulated depreciation, amortisation, impairment or — for an equity-accounted investment — the investor’s share of losses.
In plain terms
For a loss-making associate or joint venture it acts as a floor at zero. Once it is exhausted, further losses stop being recognised, and reported profit improves with nothing having changed.