Impairment charge is a business term used to describe the cost associated with an asset (such as a company’s long-term investments, property, equipment or inventory) that has lost some of its value over time. These charges are generally found on the balance sheet, in the form of a write-down, and represent the loss of future cash flows that were expected from the operations of that asset. Impairment charges can also be used to reflect a decrease in the value of intangible assets such as brand names, trademarks, patents, copyrights, etc. By recognizing these losses, it helps companies maintain accurate financial statements and gives them a better idea of their financial standing and performance.