Loss on Impairment Income Statement is an accounting item within a company’s income statement that brings attention to any losses caused by the impairment of long-term assets. Businesses may come across situations involving long-term assets where the decrease in market value has been greater than the amortization already taken or exceeds the carrying value of the asset. By reporting this difference as a Loss on Impairment, businesses are provided with more transparency, allowing stakeholders such as investors and creditors to make better decisions about their investments and obligations. In essence, Loss on Impairment creates a truer picture of the financial status of a business, which helps guide decision making from both internal and external stakeholders.