Courses / Cost Structure / Impairment Charge

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Impairment Charge (4:18)

Impairment Charge is an expense that reflects a reduction in the value of the company’s assets without actually selling them.

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Stephen McGee

In this video you say when the carrying value is greater than the fair market value, then nothing is done. However; in your example you show that the carrying value of $90 being higher than the fair market value of $70 must be revised down $20 and this is the impairment charge. What am I missing?

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