write-down

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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 ?

This, in turn, can trigger write-downs, and enough write-downs can create problems with creditors.

Are housebuilders on firm foundations? in association with RBS

But Thain said he could not promise the company will avoid further write-downs on subprime mortgage-related positions.

$16bn write-down blow for Merrill

Prince handed in his resignation amid the huge write-downs and ongoing management and investor frustration with his management and the company's long-stagnant stock price.

LEAD: Citigroup Chair Prince resigns

Gemstar's shares have fallen sharply since March 18, when it announced after trading had ended for the day the sudden departure of its co-president Peter Boylan and the $5 billion write-down.

NEWS CORP. WRITES DOWN ITS GEMSTAR INVESTMENT

Thus, the IRS ruled that the write-down and amendment to the ESOP would not result in a contribution to the ESOP trust under Sec.

Current developments in employee benefits

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

Further, the Code grants the Service much discretion in determining whether the taxpayer's accounting method clearly reflects income,(20) which serves as another limitation to an inventory write-down.

Components of the resersal may include an estimated loss from operations during the phaseout period, any write-down to net realizable value and estimated costs of disposal.

Lessors and discontinued operations subsequently retained

3 million in write-downs of its Permian Basin oil properties.

PLAINS PETROLEUM REPORTS HIGHER CASH FLOW BUT LOWER OPERATING PROFITS FOR 1993

a) During the current quarter, the Company recorded restructuring costs aggregating $24 million, principally related to the write-down of certain surplus or underutilized assets of the Company's automotive and wallcoverings businesses and to provide for the obsolescence of certain manufacturing processes as a result of shifts in customer demand.

COLLINS & AIKMAN GROUP, INC. REPORTS THIRD QUARTER RESULTS

The information in this news release contains forward-looking statements, including the statements that NOVA Chemicals will take a non-cash asset write-down of approximately U.

NOVA Chemicals Announces Reduction of Solid Polystyrene Capacity and Fixed Costs in Europe

This charge includes an asset write-down of approximately $50 million for the Beartrack development property, as well as costs associated with closing the Royal Mountain King and Paradise Peak mines.