The Impairment Loss Account is a ledger account used to record the losses incurred by impaired assets in a business. Impairment Loss Accounts can be found on the balance sheet, usually under the section entitled “accumulated depreciation” or “allowance for doubtful accounts”. These accounts provide businesses with a way of ensuring that one-time non-recurring expenses remain visible, instead of getting lumped into routine expenses. They also serve as an indication of the long-term health of a company, since these accounts must be regularly monitored and adjusted to keep track of any potential impairments. By doing so, businesses can better plan for the future and mitigate losses.
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