Impaired Assets are any assets of a business whose value has declined and which may no longer be able to generate the income that had been anticipated. An impairment of an asset is generally recognized when its estimated future cash flows are less than its carrying amount, or it is expected to be sold at a price below its carrying amount. In short, impaired assets can be thought of as a missed opportunity for the company – things that have become worth far less than what was originally paid for them. With the right strategy, these assets can still be redeemed, but it will require a significant effort from the company. By carefully evaluating their present and future prospects, businesses can make better decisions about how best to use impaired assets in order to maximize profits.