impairment

im·pair   (ĭm-pâr')    tr.v.   im·paired, im·pair·ing, im·pairs To cause to diminish, as in strength, value, or quality: an injury that impaired my hearing; a severe storm impairing communications. [Middle English empairen, from Old French empeirer, from Vulgar Latin *impēiōrāre : Latin in-, causative pref.; see in-2 + Late Latin pēiōrāre, to worsen (from Latin pēior, worse; see ped- in Indo-European roots).] im·pair'ment n.

impair 

Impairment

1. A reduction in a company's stated capital.

2. The total capital that is less than the par value of the company's capital stock.

Investopedia Commentary

1. This is usually reduced because of poorly estimated losses or gains.

2. Impairment can be used in many contexts. Whatever the situation, impairment is bad for the company.

Related Links

Impairment Charges: The Good, The Bad and The Ugly

See also: Capital, Impaired Asset, Impaired Credit

impairment

Reduction in a firm's capital as a result of distributions or losses.

Main Entry: im·pair
Pronunciation: im-'per
Function: transitive verb
1 : to damage or make worse by or as if by diminishing <impaired health>
2 : to diminish the value of (property or property rights); specifically : to diminish the value of (legal contractual obligations) to the point that a party loses the benefit of the contract or the contract otherwise becomes invalid impairing a state's own obligations was entitled to less deference —Gerald Gunther> —see also CONTRACT CLAUSE —im·pair·ment noun

Main Entry: im·pair
Pronunciation: im-'pa(&)r, -'pe(&)r
Function: transitive verb
: to damage or make worse by or as if by diminishing in somematerial respect impaired by overwork> —im·pair·ment /-'pa(&)r-m&nt/ noun

impairment im·pair·ment (ĭm-pâr'mənt)
n.
Weakening, damage, or deterioration, especially as a result of injury or disease.

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im·pair' v.