Impairment Accounting is an accounting concept used to record decreases in the value of long-term assets such as property, plant, and equipment. It ensures that a company’s financial statements reflect the decline in the fair market value of an asset over time. In other words, it helps companies accurately record any losses or reductions in the value of an asset due to changes in market conditions, technology advancements, or changes in customer tastes. Impairment Accounting is an important tool for making sure a business’s financial statements accurately reflect the true value of their assets.