writedown


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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.

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.
References in periodicals archive ?
Bouloutas was against this, responding that the proposed writedown amount was too high.
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.
Martore emphasized that the writedown is essentially an accounting issue and does not affect Gannett's day-to-day business operations.
An AFX news report said this writedown includes adjustments on the value of some of DHL's fixed assets, such as aircraft, trucks, property leases and office equipment.
Reporting on writedowns, however, is not an independent process; impairment cannot be considered in isolation.
Pearson and Okubara (Accounting Horizons, March 1987) report that over $26 billion in writedown charges were announced by public corporations during 1985-86.
Under cross-examination by one of the defence lawyers, Christos Stylianides, a witness for the prosecution, insisted he had indeed spoken on the phone with the bank's CFO Annita Philippidou about the writedown, and denied that he had "made up the story".
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.
An unnamed trader in Paris told Reuters that Peugeot's writedown will not impact its liquidity or solvency, as it does not affect its cash flows, but it reflects a more pessimistic outlook for the European market's recovery.
However, a EUR77m writedown on the bank's holdings of Greek government debt pushed the bank into a pretax loss for the full year.
It is understood Eurozone leaders want private sector creditors to accept a writedown of more than 50% on their holdings of Greek Government debt.
In April Schroders said it had taken an unrealised mark-to-market writedown of pounds 25.