Loss in value (perte de valeur or dépréciation) refers to the reduction in the economic value of an asset or business below its carrying amount, recognised as an impairment charge under IAS 36. It occurs when the recoverable amount of an asset (the higher of value in use and fair value less costs to sell) falls below its book value — triggered by observable indicators such as market deterioration, loss of key customers, technological obsolescence or management changes. In valuation and due diligence, past impairment charges signal strategic underperformance and must be evaluated for recurrence risk.

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Example: a Swiss technology group records a CHF 2.8 million loss in value on a software division following the loss of a major contract. The impairment reduces the division's carrying value from CHF 6.5 million to CHF 3.7 million — a non-cash charge that reduces reported net income but not operating cash flows. In the acquisition analysis, this impairment triggers a detailed review of the division's remaining competitive position and recovery prospects.

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Hectelion conducts loss in value analyses and impairment tests in the context of IFRS reporting, transaction due diligence and litigation support.