The glossary to understand and take action

Impairment

A value adjustment considered when an asset has suffered a loss in value that must be taken into account under the applicable rules.

Notion comptable, fiscale ou juridique · Luxembourg Fiduciaries Editorial Team · Reviewed on

Understand the scope

Definition and points to distinguish

It differs from the depreciation schedule, which allocates a value over time. Its assessment is based on facts and evidence specific to the asset: condition, recovery prospects, use or market conditions, in particular. An accounting adjustment does not automatically entail identical tax treatment.

In your file

What this changes in practice

Impairment reflects a loss in value to be recognised when the conditions of the applicable accounting framework are met. It differs from depreciation, which generally allocates the cost over the useful life. The assessment must be based on documented indicators and assumptions. It may concern different assets, subject to their own rules, and may be reassessed when circumstances change.

A scenario to help you understand

Educational example

Goods become difficult to sell. The business examines their value and realisation prospects rather than automatically retaining their initial cost.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Identifier les indices de perte de valeur
  • Documenter l’estimation
  • Réexaminer les hypothèses à la clôture

The practical question

Find out more

Une dépréciation est-elle identique à une sortie d’actif ?

Non. Elle traduit une diminution de valeur dans les comptes sans nécessairement supprimer l’actif. Une sortie correspond à un autre événement, comme une cession ou une mise au rebut. Documentez le fait qui justifie chaque traitement. Les évolutions ultérieures de valeur et les reprises éventuelles doivent être examinées selon le référentiel applicable.

Connecting concepts

Terms to know as well

Continue with the concepts, contacts and procedures related to this topic.

DepreciationDepreciation allocates the depreciable amount of an asset over its estimated useful life, in accordance with the applicable rules.InventoryGoods tracked in the operating cycle, particularly for sale, processing or consumption in production.Doubtful receivableA receivable whose recovery involves uncertainty that must be examined and documented.Accounting closeThe accounting close encompasses the work that finalises the accounts for a financial year and makes it possible to prepare the financial statements.Cut-offPrinciple requiring expenses and income to be allocated to the financial year to which they relate, independently of payment alone.Annual accountsAnnual accounts present the entity’s financial position and result at the end of a financial year, together with the documents required under its regime.

Put it into practice

Explore further with our guides

Practical guideAccounting close: preparing the year-end filePractical guideFixed assets: maintain a register and prepare depreciationPractical guideInventory of stocks: count, reconcile and value

Sources and verification

References consulted on 20 September 2026. Official procedures specify the applicable conditions and exceptions.

This guide explains a general process. The applicable rules depend on your situation; it does not constitute personalised advice. Report a correction.

A definition gives you a reference point. To examine your situation, clarify your question with a professional.