- book value) is questionable at best.
Write-downs are typically reflected in a company's income statement as an above-the-line expense, thereby reducing net income. This, however, is not always a bad thing, since a write-down is simply a paper loss, which, since it lowers net income, will reduce a firm's tax burden. Companies will usually attempt to time large write-downs together, so they can "take a bath" in one reporting period with the hope of quickly recovering in the next period.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
write down — vt wrote down, writ·ten down, writ·ing down: to reduce the book value of (an asset) write down accounts receivable write–down / rīt ˌdau̇n/ n Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
write-down — [rīt′doun΄] n. a reduction in the book value of an asset, as because of depreciation or a decline in market value … English World dictionary
write down — verb 1. put down in writing; of texts, musical compositions, etc. (Freq. 4) • Syn: ↑set down, ↑get down, ↑put down • Hypernyms: ↑write • Hyponyms: ↑transcribe … Useful english dictionary
write down — phrasal verb [transitive] Word forms write down : present tense I/you/we/they write down he/she/it writes down present participle writing down past tense wrote down past participle written down to write something on a piece of paper Write down… … English dictionary
Write-down — Decreasing the book value of an asset if its book value is overstated compared to current market values. The New York Times Financial Glossary * * * write down ˈwrite down also writedown noun [countable, uncountable] ACCOUNTING when the value of… … Financial and business terms
write-down — Reducing the book value of an asset if its is overstated compared to current market values. Bloomberg Financial Dictionary * * * write down ˈwrite down also writedown noun [countable, uncountable] ACCOUNTING when the value of an asset as shown in … Financial and business terms
write down — PHRASAL VERB When you write something down, you record it on a piece of paper using a pen or pencil. [V P n (not pron)] On the morning before starting the fast, write down your starting weight... [V n P] Only by writing things down could I bring… … English dictionary
write-down — UK / US noun [countable/uncountable] Word forms write down : singular write down plural write downs business a reduction in the value of the assets that a company owns … English dictionary
write-down — noun (accounting) reduction in the book value of an asset • Syn: ↑write off • Derivationally related forms: ↑write down, ↑write off (for: ↑write off) • … Useful english dictionary
write-down — /ruyt down /, n. Accounting. 1. a reduction of the entered value of an asset account. 2. the procedure of reducing the recorded value of an asset, either by estimate or as a plan. [1930 35; n. use of v. phrase write down] * * * … Universalium