Impairment Loss Income Statement, also known as “I P/L”, is an important tool used by businesses to assess the current value of their assets. It measures the difference between the current and original cost of a given asset, which provides an indication of whether that asset is still worth what was originally paid for it. This evaluation can help a business make more informed decisions about which assets to keep or sell, revealing unrealized losses that may affect the company’s bottom line. By tracking this data over time, businesses can more accurately gauge the profitability of their investments and make smarter choices about how to use their resources.