What is impairment status in SAP FS-BA-PM - Processes and Methods?

SAP Term: impairment status

• Component: FS-BA-PM

• Component Name: Processes and Methods

• Description: A classification required for deriving the impairment calculation approach EL or ECF. The status is GAAP-dependent. Under IAS 39, there are the values 'good book' and 'bad book'. Under IFRS 9 these categories are replaced by stages 1 through 3.

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• Key Concepts: 
  Impairment status is a term used in the FS-BA-PM Processes and Methods component of SAP. It is used to indicate whether an asset has been impaired or not. An asset is considered impaired when its value has decreased due to external factors such as changes in the market or economic conditions. When an asset is impaired, it must be reported in the financial statements. 
  
  How to use it: 
  In SAP, impairment status is used to track the value of assets over time. When an asset is impaired, its status will be updated in SAP to reflect this. This information can then be used to generate financial reports that accurately reflect the current value of the asset. 
  
  Tips & Tricks: 
  It is important to regularly review the impairment status of assets in SAP to ensure that they are accurately reflected in financial statements. This can help prevent errors and ensure that assets are properly accounted for. 
  
  Related Information: 
  The impairment status of an asset can also be used to determine whether or not it should be depreciated over time. This information can be found in the depreciation area of SAP. Additionally, impairment status can be used to determine whether or not an asset should be written off or revalued.