what is the difference between "credit costs" and "impairments" from accounting perspective?

Don't know but I doubt anyone in the world knows what the heck is "impairment"! I've read the IAS so many times on that issue and I really couldn't understand what the rule maker was thinking about.

impairment's when your loan's PV is less than book value

In accounting, some assets are tested periodically for impairment. The usual test is when the fair value of the asset is less than its book value. In such cases, the asset may be written down and the amount of the write down is charged to the period's net income.

QuoteOriginally posted by: csaIn accounting, some assets are tested periodically for impairment. The usual test is when the fair value of the asset is less than its book value. In such cases, the asset may be written down and the amount of the write down is charged to the period's net income.That's fair-value accounting through P&L.Impairment is a much more 'odd' concept! It's supposed to be a (near) sure loss. Under the rule maker "view" a fall in the fair value of an asset, per se, is not evidence of impairment. Just don't ask me what impairment is. Ask the IASB!

QuoteOriginally posted by: BullBearQuoteOriginally posted by: csaIn accounting, some assets are tested periodically for impairment. The usual test is when the fair value of the asset is less than its book value. In such cases, the asset may be written down and the amount of the write down is charged to the period's net income.That's fair-value accounting through P&L.Impairment is a much more 'odd' concept! It's supposed to be a (near) sure loss. Under the rule maker "view" a fall in the fair value of an asset, per se, is not evidence of impairment. Just don't ask me what impairment is. Ask the IASB! it's AICPA if we're dealing with SOP03-3. if you expect to get less cashflow due to credit deterioration, then you may have an impairment situation. which is in general when FMV < book value.