write-down

Thân thiện

The accountant records a write-down in the ledger.

Definition

1. 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  • The company announced a significant write-down on its outdated inventory.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.

Học thuật

Noun

1. (accounting) reduction in the book value of an asset

Từ đồng nghĩa

• write-off