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Explanation of some terms in annual reports of listed companies in Hong Kong (loan business)
Impairment refers to the decline in value, and its historical cost value decreases. For example, if you lend someone1100,000 yuan at an annual interest rate of 6%, and the currency exchange rate drops by 65,438+00% when the payback period has expired, then the interest income of your investment loan and related loans is lower than the original value, which is called impairment.