writedown


Also found in: Dictionary, Thesaurus, Encyclopedia, Wikipedia.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
For its part, the prosecution referred to a number of "trigger points" indicating a goodwill writedown, such as the worsening economy in Greece, sliding credit ratings and the bank's increasing Emergency Liquidity Assistance.
ECB Executive Board member Joerg Asmussen, a German, also warned that a debate about a second debt writedown was damaging.
Including writedowns on its soon-to-be sold Cheuvreux brokerage, its Italian consumer credit business, Spain's Bankinter, and losses on its own debt, the bank slumped to a quarterly loss of 2.85bn euros.
The lender has amassed a tally of writedowns and costs from the financial maelstrom of almost 17 billion euros since last year,making the now partly state-owned bank one of Europe's highest profile casualties.
The writedowns and losses combined add up to almost half the cash raised by B&B in an emergency u400m rights issue completed earlier this month.
RBS swung to its first-ever reported loss from a pounds 5.1 billion profit a year ago after being hit by the writedowns on credit products.
At a Deutsche Bank investor conference in New York, Gannett Chief Financial Officer Gracia Martore said much of the writedown reflects a declining value in Gannett's United Kingdom newspaper operation, Newsquest.
Despite heavy writedown, market speculation, carrier says it has no plans to exit.
But while the media has been filled with reports of DoCoMo's massive writedown of overseas investments, a search on the Web turned up not a whiff of news related to Bouygues' i-mode launch.
These included a $599 million writedown for its Formula One racing stake and a $315 million writedown for its purchase of the Jim Henson Co.
plus net writedown of assets/bad and doubtful debts 1 134 1 066 6.