What Is an Impaired Asset? An impaired asset is an asset that has a market value less than the value listed on the company’s balance sheet. When an asset is deemed to be impaired, it will need to be written down on the company’s balance sheet to its current market value. Key Takeaways Assets should
What Is Impaired Credit? Impaired credit occurs when there has been a deterioration in the creditworthiness of an individual or entity. This is usually reflected through a lower credit score, in the case of an individual, or a reduction in the credit rating assigned to an entity or debt issued by a rating agency or
What Is an Impaired Insurer? An impaired insurer is an insurance company that is potentially unable to fulfill its policy obligations and has been placed under rehabilitation. An impaired insurer is not insolvent but it does pose a potential threat to its policyholders. States consider impaired insurers a risk because they may be unable to fulfill obligations
What Is Impairment? In accounting, impairment is a permanent reduction in the value of a company asset. It may be a fixed asset or an intangible asset. When testing an asset for impairment, the total profit, cash flow, or other benefits that can be generated by the asset is periodically compared with its current book
What Is Imperfect Competition? Imperfect competition exists whenever a market, hypothetical or real, violates the abstract tenets of neoclassical perfect competition. In this environment, companies sell different products and services, set their own individual prices, fight for market share, and are often protected by barriers to entry and exit. Key Takeaways Imperfect competition refers to any economic market that
What Is an Imperfect Market? An imperfect market refers to any economic market that does not meet the rigorous standards of the hypothetical perfectly—or purely—competitive market. Pure or perfect competition is an abstract, theoretical market structure in which a series of criteria are met. Since all real markets exist outside of the spectrum of the
What Is Implementation Lag? Implementation lag is the delay between an adverse macroeconomic event and the implementation of a fiscal or monetary policy response by the government and central bank. Implementation lag can result from delays in recognizing a problem; disagreements and bargaining over the appropriate response; physical, technical, and administrative constraints on the actual
What Is an Implementation Shortfall? In trading terms, an implementation shortfall is the difference between the prevailing price or value when a buy or sell decision is made with regard to a security and the final execution price or value after taking into consideration all commissions, fees, and taxes. As such, implementation shortfall is the sum
What Is an Implicit Cost? An implicit cost is any cost that has already occurred but not necessarily shown or reported as a separate expense. It represents an opportunity cost that arises when a company uses internal resources toward a project without any explicit compensation for the utilization of resources. This means when a company
What Is an Implied Contract? An implied contract is a legally-binding obligation that derives from actions, conduct, or circumstances of one or more parties in an agreement. It has the same legal force as an express contract, which is a contract that is voluntarily entered into and agreed on verbally or in writing by two or
