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The author of this article starts from several common case situations and shares with you how to design asset impairment for your reference. . What is asset impairment? Asset impairment refers to the downward adjustment of the value of the excess amount of assets held by an organization when the book value of the organization exceeds the recoverable amount. It is used to reflect the decline in asset value and ensure that the financial statements can truly and fairly reflect the financial position of the company. For example: Suppose there is a company called "Good Health Pharmaceuticals" that has a patented drug production equipment.