Financial Terms Glossary

Impairment Charge

Formal

A very special type of depreciation charge. If a company has bought another business and paid a certain value for it - then this can be included as an asset by the acquiring company. However, if the nature of the acquired business changes, or the economic situation deteriorates, such that the monies paid for that business are no longer justified under rules of future business valuation - then the value of this business must be reduced by charging the Profit and Loss Account with a specific 'Impairment Charge'. Not good news.

Informal

At the height of a Stock Market boom some Corporations go mad and pay too much money for other companies that contribute to global domination. Later, when everything calms down, you re-examine what you have bought and realise you paid too much. You know this by comparing your new (sane) projections with the ones that justified the (insane) acquisition in the first place. This difference or 'Impairment Charge' is the full amount by which you originally overpaid and gets written off in full against current profits. Ouch.

What we do

At Shark Finesse we have developed an enterprise-grade cloud application to help businesses standardise and simplify their value engagements across the entire customer journey.

Shark, a business value engagement platform used by 1000’s of customer-facing teams globally (e.g. pre-sales, sales, value teams, and customer success) is easy to use, intuitive and usable directly with the customer to negotiate the likely business returns from investing in a solution.

By adopting the Shark approach you will fundamentally transform conversations with new and existing customers, close more business, and differentiate from the competition.
Find out how

We'd love to hear from you!

Phone
+44 (0)1256 338635
Address
Grove House, Lutyens Close
Basingstoke, Hampshire
RG24 8AG, UK