write-down

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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.

Peab's results for 2015 affected by write-down of Mall of Scandinavia project

5bn in write-downs on US collateralised debt obligations and subprime mortgage-related securities.

$16bn write-down blow for Merrill

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.

LEAD: Citigroup Chair Prince resigns

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.

Incentives for and consequences of initial voluntary asset write-downs in the emerging Chinese market

404, the write-down did not result in any contribution under Sec.

Current developments in employee benefits

Also, this write-down of Mall of Scandinavia does not affect the company's liquidity.

Peab reports SEK800m write-down in Mall of Scandinavia project in Solna

The sharply higher-than-expected subprime write-downs indicate bad loan woes are expanding among financial institutions.

LEAD: Merrill Lynch reports $2.24 bil. net loss in July-Sept

In addition, Telenor has made a NOK75m write-down of fixed assets in Sweden.

Telenor reports write-down of Sonofon's market value

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.

Lessors and discontinued operations subsequently retained

3m pre-tax write-down of the carrying value of crude oil inventories within the marketing segment and a USD10.