Difference Between Impairment And Depreciation

Impairment is the gradual decrease in the recoverable value or fair market value of Fixed Assets / Non Current Assets due to physical usage, damage, obsolescence, etc as the carrying value / book value exceeds the recoverable amount while Depreciation is the systematic allocation of the cost of the Depreciating Assets until the Useful Life of these Assets is expired.

Impairment account is a loss to the business while depreciation is an expense which is just an estimated amount charged to Expense every year till the end of useful life of the assets so it is also recorded on Income Statement like impairment loss.