Asset impairment means that your asset is no longer worth its price. Although depreciation is accrued every month, the cumulative amount of depreciation accrued cannot match the rate of decline in value of the asset. In order to correctly reflect the value of the company's assets, it is necessary to make an impairment provision for the asset so that the book value of the asset can be more in line with market pricing.

In this way, impairment provision is actually an addition to depreciation. The accrual of this expense is directly included in the company's profit and loss, but it requires tax adjustments during income tax settlement, and will not pay a separate tax.