Write Down - Definition, What is Write Down, Advantages of Write Down, and Latest News - ClearTax (2024)

FAQs

Write Down - Definition, What is Write Down, Advantages of Write Down, and Latest News - ClearTax? ›

In accounting, write-down describes the reduction in the book value of an asset when the asset's fair market value (FMV) has dropped below the carrying book value; it becomes an impaired asset.

to write something on a piece of paper so that you do not forget it: Did you write down Jo's phone number? SMART Vocabulary: related words and phrases.

A write-down reduces the value of an asset for tax and accounting purposes, but the asset still retains some value. A write-off reduces the value of an asset to zero and negates any future value.

A write-down is an accounting adjustment that reduces the book value of an asset to reflect a decline in its fair market value. Write-downs impact a company's balance sheet by lowering the carrying value of assets, which can have ripple effects across the financial statements.

A write-down is the reduction in the book value of an asset when its fair market value has fallen below the book value, and thus becomes an impaired asset. Depreciation: Definition and Types, With Calculation Examples.

Examples from the Collins Corpus

I am going to write down all the information we have gathered. All the same, I'd be glad if you could write down the names and places while they're fresh in your memory. It wasn't only the doctor's delivery that made it hard to write down what he said.

"Write" means "compose a sentence (or sentences)." "Write down" means "write something on a piece of paper (or other similar material)" or "put something in writing." We can write something mentally, but we have to write things down physically.

A write-down is an accounting term for the reduction in the book value of an asset when its fair market value (FMV) has fallen below the carrying book value, and thus becomes an impaired asset.

An inventory write-down impacts both the income statement and the balance sheet. A write-down is treated as an expense, which means net income and tax liability is reduced. A reduction in net income thereby decreases a business's retained earnings, which would then decrease the shareholder' equity on the balance sheet.

Whereas a write-down is generally considered a red flag; a write-up is not considered a positive harbinger of future business prospects — since they're generally a one-time event. During an asset write-up, special treatment for intangible assets and tax effects are considered.

What does the term "write down" mean? ›

What Is a Write-Down? A write-down is an accounting term for the reduction in the book value of an asset when its fair market value (FMV) has fallen below the carrying book value, and thus becomes an impaired asset.

: to reduce in status, rank, or value. especially : to reduce the book value of. intransitive verb. : to write so as to appeal to a lower level of taste, comprehension, or intelligence.

enter inscribe jot down log record take down transcribe. write down (verb as in tally) Strongest matches. itemize register.

Dictation is the process of writing down what someone else has said.