A category N write-off
that has had cosmetic damage repaired will generally be worth around 25 per cent less than a similar vehicle with a clear history.
While the size, timing, and lack of disclosure regarding write-offs
is concerning, the results are not terribly surprising.
The mean can be compared to the benchmark figure of one to two years to determine whether a firm's allowance for doubtful accounts balance is reasonable in relation to subsequent write-offs
But category A or B write-off
is a vehicle that should have been crushed and never returned to the road.
The AA therefore advises buyers of rebuilt write-offs
to check their insurance before paying for the car, or they risk ending up with an uninsurable car that can't go on the road.
At least one analyst ignored this non-cash write-off
as, effectively, irrelevant -- but the financial statement footnote proved prescient:
intends to sharply increase the planned amount of write-offs
from 400 billion yen.
It is not like there have been few direct write-offs
until now,'' he said.
One view of write-offs
of asset impairments is that management uses the accounting rules and manipulates earnings either by not recognizing impairment when it has occurred or by recognizing it only when it is advantageous to do so.
However, you won't be allowed any write-offs
if your home office is not your principal place of business.
But because Union Pacific had already used other tax breaks to reduce its tax rate to around 1 percent, these extra write-offs
were all but worthless to it.
The charge consists of write-offs
of leasehold improvements and assets of $326,000; write-off
of goodwill of $69,000; accrual for lease obligations of $1.