Impairments Policy

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Screenshot of the first page of Impairments Policy

Impairment is the condition that exists when the carrying amount of a long-lived asset (asset group) exceeds its fair value. Each operating unit and region/business segment should review fixed assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The change in circumstances may be sudden or gradual. Examples of impairment indicators include a significant decrease in the market value of an asset and a significant change in the extent or way an asset is used.

This sample policy is designed to help organizations define processes for reviewing impaired property and equipment.

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