Asset impairment provision means that the recoverable amount of an asset is lower than its book value, and the difference is treated as a loss or offset from the company's profits. There are generally the following reasons for asset impairment: it may be that the market price of fixed assets continues to fall, or it may be that the technology is outdated, damaged or left idle for a long time.
Under normal circumstances, provision for asset impairment will generally affect the normal operation of enterprises, which may lead to a decline in corporate profits and an increase in audit risks, so this is not good.