Impairment of assets seeks to ensure that an entity's assets are not carried at more than their recoverable amount.
Impairment is a reduction in the recoverable amount of an asset or cash -gwnerating unit below it's carrying amount.
Recoverable amount of an asset or cash generating unit is the higher of it's fair value less cost of disposal and it's value in use.
Fair value is the price that would be recovered on the disposal of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Costs of disposal are costs directly attributable to the disposal of an asset or a cash generating unit, excluding finance costs and income tax expense.
Value in use is the present value of the future cash flows expected to be derived from an asset or cash generating unit.
Impairment loss is the amount by which the carrying amaunt of an asset or cash generating unit exceeds it's recoverable amount