Legal Definitions - write-up

The term "write-up" can refer to a noun with two distinct meanings, or a verb primarily used in accounting.

• As a noun, "write-up" can mean:

  • 1. A formal document detailing an employee's performance or conduct issues. This is typically a memorandum created by an employer to record a discussion with an employee about poor work performance, a violation of company policy, or other disciplinary matters. It serves as an official record of the issue and often outlines expectations for improvement or potential consequences.

    Example 1: After multiple instances of failing to meet sales targets, Mark's manager issued a formal write-up, documenting the specific performance deficiencies, the coaching provided, and the steps Mark needed to take to improve within the next 30 days.

    Explanation: This example illustrates a formal memorandum from an employer to an employee, detailing poor work performance and the disciplinary process, aligning with the first noun definition.

  • 2. A published article or report about a person, event, or product. This refers to a piece of journalistic or descriptive writing that appears in a newspaper, magazine, website, or other publication, providing information or commentary.

    Example 2: The local charity event received a glowing write-up in the community newspaper, highlighting its success in raising funds for a new children's library and featuring interviews with key organizers.

    Explanation: Here, "write-up" refers to a newspaper article (a publication) about a specific event (the charity event), fitting the second noun definition.

• As a verb, "write up" (or "write-up" as a noun in this context) means:

  • In accounting, to increase the recorded value of an asset on a company's financial statements. This adjustment is made to reflect a higher current market value than its original cost. However, generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS) typically restrict this practice to very specific circumstances, as assets are usually recorded at their historical cost or the lower of cost or market value.

    Example 3: A real estate development company, owning a piece of land that has significantly appreciated due to rezoning and new infrastructure projects nearby, might consider if it's permissible to write up the land's value on its balance sheet to reflect its current fair market value, although this is rarely allowed under standard accounting rules unless specific conditions are met, such as for certain types of investment properties.

    Explanation: This example demonstrates the act of increasing an asset's valuation in financial statements, specifically land, to reflect its current market value, which is the core meaning of "write up" in accounting, while also acknowledging its limited applicability.