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Impairment

Also called write-down.

A reduction in an asset's value on a company's books when accounting rules say it's worth less than recorded.

When a company concludes it must record a material impairment, it reports it on an 8-K under Item 2.06, with an estimate of the charge. Source 1 Source 2

Where it comes up

Sources

  1. SEC, Investor.gov: Investor Bulletin: How to Read an 8-K (opens in a new tab)
  2. SEC: Form 8-K and its general instructions (opens in a new tab)

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