Impairment Loss is the loss of value in a fixed asset due to the deterioration of its worth. This decrease in market value could be caused by many different factors, such as changes in economic conditions, technological advances, or increased competition. Businesses must measure and record Impairment Losses on their financial statements in order to ensure they are accurately reporting the performance of their assets. An impairment loss can have a significant impact on a business’s profits and losses, and it pays to stay ahead of the game when it comes to recognizing and measuring this loss.