According to Baidu Encyclopedia, asset impairment means that the book value of an asset exceeds its recoverable amount. To judge whether an asset has been impaired, we should rely on some signs that the asset may have been impaired. If there are signs, the enterprise should formally estimate its recoverable amount.
Relevant regulations: according to the enterprise accounting system, eight impairment provisions are made for assets, namely: bad debt provision for accounts receivable, other receivables and other receivables; Provision for impairment of short-term investments such as stocks and bonds; Long-term equity investment, long-term creditor's rights investment and other long-term investments shall be provided with long-term investment impairment reserve; Provision for inventory depreciation of raw materials, packaging materials, low-value consumables, inventory goods and other inventories; Provision for impairment of fixed assets such as buildings, machinery and equipment, intangible assets such as patent rights and trademark rights, and provision for impairment of projects under construction and entrusted loans. In addition to monetary funds, there are bills receivable, prepayments, long-term prepaid expenses, etc. The assets have been provided with corresponding impairment reserves.