Asset Impairment refers to a significant and unforeseen decline in the value of an asset, resulting in an adjustment to the carrying value on the balance sheet. It ensures that the recorded value of the asset does not exceed its recoverable amount.
Subsequent events are critical incidents that occur after the date of the financial statements but before the audit report is issued, which can significantly impact the financial position or earning capacity of a business.
A comprehensive guide to understanding write-downs in accounting, when they are needed, and their impact on financial statements.
