write-down
Definition
- Noun:
- Reduction in the book value of an asset: In accounting, a "write-down" is a formal reduction in the recorded monetary value of an asset on a company's balance sheet. This occurs when the asset's market value falls below its current book value, and it is not expected to recover.
Usage
- A "write-down" is a specific accounting action. It is used to describe the event or the amount by which an asset's value is reduced.
- It is a compound noun, typically hyphenated.
Examples
- Noun:
- The company announced a significant write-down on its outdated inventory.
- After the market decline, the bank had to take a write-down on its loan portfolio.
Advanced Usage
- "To take a write-down": This phrase is commonly used to describe the action of recognizing and recording the loss in value.
- The firm was forced to take a $2 million write-down on the failed project.
Variants and Related Words
- Write down (verb phrase): The action of reducing the book value of an asset.
- The accountant will write down the value of the machinery.
- Write-off (noun): A more severe reduction where an asset's value is decreased to zero, often because it is deemed worthless or uncollectible.
- The bad debt was declared a complete write-off.
Synonyms
- Impairment charge: A more formal accounting term for a reduction in the recoverable value of a fixed asset.
- Valuation allowance: A reserve created against an asset to reflect its reduced value.
Notes
- "Write-down" is primarily a technical term used in finance, accounting, and business contexts. It indicates a permanent or long-term decline in an asset's value, as opposed to a temporary market fluctuation.
Noun
-
(accounting) reduction in the book value of an asset
Khám phá thêm
Các từ liên quan
Từ đồng nghĩa
Từ gần giống
Từ chứa "write-down"
