THE IMPAIRMENT OF PLANT ASSETSSomet

THE IMPAIRMENT OF PLANT ASSETS
Sometimes, it becomes apparent that a company cannot reasonably expect to recover the carrying amount of certain plain assets, either through use or through sale. For example, a computer manufacturer may have paid a high price to acquire specialized production equipment. If new technology renders the equipment obsolete, however, it may become apparent that it is worth less than the amount at which the equipment is carried in the accounting records.