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what is the meaning of empairment asset
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Answer Posted / sudhir
dictionary meaning: weaken or damage.
in case of tangible assets we use the word depreciation for
reduction in the value of the asset due to obsolence or
wear and tear.
in the case of intangible asset there is no wear and tear,
so therefore we use the word impairment for reduction in
the value of intangible asset.
depreciation is caused only due to wear and tear.
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