Impairment

Unscheduled write-down of an asset if the recoverable amount falls below the carrying amount. This can be the rsult of factors like damage or technological obsolescence or economic factors. The recoverable amount is the higher of an asset's net selling price and its value in use. In such circumstances a write-down of the asset is necessary. By contrast, a scheduled write-down of an asset (depreciation or amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life.