Impairment

Writing an asset down because it is worth less than the books claim.

An impairment charge is recognised when the recoverable amount of an asset — often goodwill from an acquisition, or a factory whose output is no longer wanted — falls below its carrying value. The write-down is a non-cash accounting entry, but it is a public admission that money already spent will not be recovered, which is why large ones make headlines.

The impairment charge was non-cash, but it conceded that the acquisition had been worth far less than paid.