What is the difference between depreciation and impairment, when impairment is more suitable?

Question

Satish Koottala · Answer

Depreciation is writing down the value of an asset, for us to get the right value on some particular day.

Impairement is writing down the value to the fair value of the asset for which it will generate in future.

Qaisar Ali · Answer

Depreciation has to be done annually and impairment take place only when we get impairment indications....