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LSDefine

Simple English definitions for legal terms

write-down

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A quick definition of write-down:

Write-down: When something you own, like a toy or a book, becomes less valuable, you might need to write it down. This means you have to change the amount of money it's worth in your records. It's like saying, "I used to think this toy was worth $10, but now it's only worth $5."

A more thorough explanation:

Definition: Write-down is a term used in accounting to describe the process of reducing the value of an asset on a company's balance sheet. This is done when the asset's value has decreased, and the company wants to reflect this decrease in its financial statements. The reduction in value is transferred from the asset account to an expense account.

Example: Let's say a company purchased a piece of machinery for $100,000. After a few years of use, the machinery's value has decreased to $50,000 due to wear and tear. The company would then write-down the value of the machinery by $50,000 and transfer this amount to an expense account. This would reduce the company's net income for the period.

Another example: A company has a portfolio of stocks that it purchased for $1 million. Due to market fluctuations, the value of the portfolio has decreased to $800,000. The company would then write-down the value of the portfolio by $200,000 and transfer this amount to an expense account.

The examples illustrate how write-downs are used to reflect the decrease in the value of an asset. This is important for companies to accurately report their financial position and performance to stakeholders.

writ de haeretico comburendo | writer

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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