If a long-term plant asset is impaired,the company is required to adjust the carrying value downward to its:

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When a long-term plant asset is impaired, the company is required to adjust the carrying value downward to its fair value. This is the amount that the asset could be sold for in an arm's length transaction. It represents the economic benefit that the company could receive from selling the asset, and is a more relevant measure of its value than its original cost or present value. While expected future cash flows may be considered in determining the fair value, it is not the only factor taken into account.

If a Long-Term Plant Asset Is Impaired,the Company Is Required