Difference between amortisation deprication and impairment

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Amortisation is the allocation of the cost of intangible assets over time, depreciation is the allocation of the cost of tangible assets over time, and impairment is the reduction in value of assets.

Amortisation is used for intangible assets like patents and trademarks, while depreciation is used for tangible assets like buildings and machinery.
Amortisation and depreciation both involve allocating the cost of an asset over its useful life, while impairment is a sudden decrease in the value of an asset.
Impairment occurs when the carrying amount of an asset exceeds its recoverable amount, leading to a write-down of the asset's value on the balance sheet.

Difference between amortisation deprication and impairment

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