write-down


Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.
Related to write-down: writing off

Write-down

Reducing the book value of an asset if its is overstated compared to current market values.

Write-Off

A reduction in an individual's or a company's income as the result of an expense. For example, an unpayable credit sale may be a write-off for the creditor, especially if the debtor declares bankruptcy. The bankruptcy means that the debtor is unable to pay the debt, which results in a loss of income for the creditor. A write-off may usually be deducted from one's taxable income.

write-down

(1) To reduce the value of an asset on the books and records of a company because of a decrease in value of that asset. Because of the mechanics of double-entry bookkeeping, writing down an asset has the consequence of reducing income for that time period. The timing of write-downs is therefore critical because of the impact on taxable income, earnings reported to shareholders, asset value, earnings reported to lenders, and other instances. Large companies will often write down assets in a quarter that is already disappointing, in an attempt to get all the bad news over with at the same time.(2) A lender's agreement to accept less than the full principal balance of a loan, usually in recognition of the fact that it won't collect the full balance anyway.

References in periodicals archive ?
According to the company, the write-down of the project Mall of Scandinavia has reduced net sales and operating profit by a negative SEK800m in Q4 of 2015.
5bn in write-downs on US collateralised debt obligations and subprime mortgage-related securities.
s Stan O'Neal, after the broker house took a massive loss in the July-September quarter, hit by huge write-downs on collateralized debt obligations and subprime mortgages.
In 1999, Chinese authorities amended the 1998 regulation and mandated that all listed companies write-down to market value any overvalued short-term investments, inventory, and long-term investments.
404, the write-down did not result in any contribution under Sec.
Also, this write-down of Mall of Scandinavia does not affect the company's liquidity.
The sharply higher-than-expected subprime write-downs indicate bad loan woes are expanding among financial institutions.
In addition, Telenor has made a NOK75m write-down of fixed assets in Sweden.
Inventory write-down After adopting a cost flow procedure and determining the inventory's initial basis, the practitioner must determine whether the inventory's basis may be subsequently written down.
30, the company assesses the segment's net realizable value and records a write-down of the related nonmonetary assets as part of an estimated loss on disposal.
As a result, monthly losses have resulted in the write-down of the BF bond.
3m pre-tax write-down of the carrying value of crude oil inventories within the marketing segment and a USD10.