An impairment loss is the difference between the carrying value of the asset and the future value of the asset.

Impairment Loss

A decrease in an asset's value recognized in financial statements when the asset's carrying amount exceeds its recoverable amount.

Carrying Value

The net amount at which an asset or liability is reported on the balance sheet, adjusted for factors such as depreciation or amortization.

Future Value

The value of an investment at a specific date in the future, considering compounding interest or investment returns.