write-off

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Write-off

Charging an asset amount to expense or loss, such as through the use of depreciation and amortization of assets.

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-off

To take an asset entirely off the books because it no longer has any value.If an accrualbasis taxpayer has taken money into income when bills were sent out to customers,but then some of the bills became uncollectible, the taxpayer may write off the uncollectible ones as a deduction against income. Financial institutions are required to write off loans when they become delinquent by a certain amount.

References in periodicals archive ?
Royal Bank of Scotland (RBS), now 70 per cent state-owned, fell to a slim January-March loss after bad debts quadrupled to GBP2.9 billion ($4.4 billion) and it took a GBP2.1 billion writedown on risky assets.
Excluding a u127.8m writedown on investments, losses on structured investments and some gains on debt, underlying pretax profit for the first half of this year totalled u70.2m, still less than half the year ago number.
RBS has had a troubled year and in June it was forced to raise pounds 12 billion in the biggest-ever rights issue, to repair a balance sheet stretched by last year's purchase of parts of ABN AMRO and the writedowns.
Dougan said it is "hard to predict" if Credit Suisse will require further writedowns.
It is believed that the bank may announce further writedowns of about USD17bn in the first quarter.
First quarter net income plummeted to $106 million, as the company incurred onetime items totaling $280.4 million on a pretax basis, primarily consisting of $190.9 million in writedowns of impaired assets.
British electricity utility National Power Plc has announced major charges and asset writedowns in the face of a fierce competitive environment, and scheduled its planned demerger for 2 October.
Further, if companies are required to consider writedowns annually for a large number of assets (or asset groups), the yearend burden on both internal staff and external auditors could increase substantially.
The company attributed the loss to reduced royalty and interest revenues combined with asset and property writedowns. Gold royalties received from LAC Minerals Ltd.
There has been a dramatic increase in the frequency and magnitude of asset writedowns during the 1980s.
Global Banking News-January 14, 2015--Goldman hurt by Portugal's writedowns
After a number of cost cutting efforts and asset writedowns across its operations in the country, Vale, a Brazilian mining giant has decided to sell its coal mine in Queensland, Australia.