Impairment losses

For long-lived assets, you test impairment by comparing undiscounted cash flows of the asset to the carrying amount of the asset. If undiscounted cash flows is less than carrying amount, recognize impairment. The asset must now be reported at fair value. So the impairment is the carrying amount minus the fair value of the asset. You would think it would be carrying amount minus undiscounted cash flows, since that's what you originally compared to determine whether to recognize an impairment in the first place, but it's not. It's seems inconsistent; it's like saying since undiscounted CF < carrying amount, you get to subtract FV from carrying amount. But that's the way SFAS 144 goes. Just remember you have to report the asset at fair value on the balance sheet.