writedown


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Related to writedown: Writeoff, Goodwill writedown

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.

writedown

A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. Unlike a writeoff, a writedown does not result in elimination of the asset.
References in periodicals archive ?
7 million in fiscal 2009 due to the pre-tax loss resulting from security writedowns and higher loan loss provisions and to tax-exempt investments.
As the above example illustrates, the process of determining writedowns is (or can be) a subset of the financial management system many companies already have in place.
There is very little guidance in authoritative pronouncements by the FASB, the SEC or the AICPA that govern the writedown of operating assets.
Any further writedown will depend on how the market moves over the next few months and our view of trading conditions at the time," he added.
1bn) rights issue due to further writedowns at its Calyon investment banking arm of 1.
Barclays said there was "no substance" to rumours it was about to announce a 10 billion US dollar writedown, or that bosses John Varley, chief executive and investment bank head Bob Diamond were poised to quit.
In E37, Research and Development Activities, the IASC agreed to two changes-the reinstatement of previously written-down development costs when the uncertainties that led to their writedown no longer exist and the inclusion of development stage enterprises in the standard.
EBIT and Net Result were affected by the outcome of the impairment test made at 31 December 2012, which led to a writedown of the goodwill at Group level for 156.
6 million writedown of equity securities and a $748,000 increase in the provision for loan losses, partially offset by a $1.
We're hearing writedown rumours on SocGen, but haven't got any figure," said a trader at a Paris investment bank.
Company expects fourth-quarter non-cash goodwill writedown and asset impairment for Tim Hortons U.