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LSDefine

Simple English definitions for legal terms

write-down

Read a random definition: literal construction

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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babycat
16:37
I'm guessing you don't have a sibling named babycat but I hope I still make you marginally happier than normal despite this
JumpySubsequentDolphin
16:38
maybe he has a babycat
babycat
16:38
I think everyone should have a babycat
JumpySubsequentDolphin
16:39
im allergic to baby cats >:(
JumpySubsequentDolphin
16:40
I used to have a babycat, I only got allergies after he died
JumpySubsequentDolphin
16:40
I think he’s haunting me
babycat
16:40
:(
babycat
16:40
that's too bad
babycat
16:40
you still have me though <3
@babycat: you make my day marginally happier with your scathing wit
16:43
New Father John Misty album out today
16:44
People saying it’s his best yet by far
babycat
16:45
what would I do without you renard99
awww ty wasp :)
i have 4 (baby) cats!
16:46
Damn you know her sarcasm is meant to be scathing when she calls me by my full username and not just Renard
JumpySubsequentDolphin
16:47
@jackfrost11770: FOUR?!??
16:48
I’m only teasing Babycat ily I’ll be seeing you in [REDACTED] very very soon
YES
and they're all rescues from breeders so they're all long haired persians .... w flat faces ....
they're all runts cause breeders just ... dispose of them (:(((() so they're all super tiny
literal babies
babycat
16:49
ily2 renard99
initiallaw
16:49
omg so cute
JumpySubsequentDolphin
16:51
@jackfrost11770: IM SO JEALOUS
2big2fail
16:52
perhaps peggerdine this evening
2big2fail
16:52
but then again, perhaps not
JumpySubsequentDolphin
16:53
damn no ucla wave
16:56
Hey guys! chance me 340/340GRE- 2 years work experience at PIL and wrote compelling statements. but my masters gpa is kinda 3.1 because I was domestically abused. :p
babycat
16:59
schools mostly care about your undergrad GPA
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