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Impairment Occurs When the Future Cash Flows Generated for a Long-Term

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Impairment occurs when the future cash flows generated for a long-term asset fall below its fair value.
Impairment occurs when the future cash flows generated for a long-term asset fall below its book value (cost minus accumulated depreciation).


Definitions:

Salespeople Ranking

The process of evaluating and ordering sales staff according to their sales performance or achievements.

Norm-Referenced Appraisals

Employee evaluation method comparing an individual's performance against that of their peers, rather than on a set of absolute criteria.

Straight-Ranking

A method of performance evaluation where employees are compared to each other and ranked in a simple list format.

Forced Distribution

A performance management system where employee evaluations are distributed along a bell curve, forcing rankings among an employee population.

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