This accounting principle is one that is used to determine a capital asset's profit over a set number of years in direct correlation to the asset's value. Impairments come about when there is a serious decline in the usage or value of an asset, and in this incidents the asset can be written off.

Previous Terms: 1031 Exchange, 1035 Exchange, AARP, Abeyance, Abstraction Principle, Accelerated Amortization, Acceptance Credit, Acceptance of a Bill of Exchange, Accommodation Bill, Accommodation Endorser