Definition of write-down
: a deliberate reduction in the book value of an asset (as to reflect the effect of obsolescence)
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First Known Use of write-down
1932
write down
Definition of write down
1
: to record in written form
2 a
: to depreciate, disparage, or injure by writing
b
: to reduce in status, rank, or value;
especially
: to reduce the book value of
: to write so as to appeal to a lower level of taste, comprehension, or intelligence
Examples of write down in a Sentence
a company forced to write down its assets
write down what you remember about that day
Recent Examples of write down from the Web
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Once in the field, the agent then listens to the numbers station, writes down a broadcast string of numbers, and turns to the one-time pad to decipher the message.
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Two things bugged me enough to merit writing down during testing.
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The agency is seeking Carter’s testimony after Iconix wrote down the value of Rocawear by $169 million in March 2016 and another $34 million this year, the SEC said.
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His only instruction was to write down everything Ortega freely said.
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In Summit’s bankruptcy documents, lender Bank of America said the company had repossessed and sold millions of dollars worth of cars without writing down the loans.
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Shepard wrote down her husband's phone number as the contact for notification.
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Brown reportedly wrote down the boys' names and details of the rape, including the names of witnesses.
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As part of this mind-reading exercise, Pearlman had Rose write down the score to any game on a piece of paper.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'write down.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of write down
1588
write down Synonyms
Financial Definition of WRITE-DOWN
write-down
What It Is
A write-down is the accounting term used to describe a reduction in the book value of an asset due to economic or fundamental changes in the asset. A write-down is the opposite of a write-up.
How It Works
A write-down can be processed whenever a firm readjusts their balance sheet numbers which typically happens when a company files their quarterly earnings.
Insurance companies often need to write down assets since they must maintain a certain stated level of capital compared to their portfolio of potential liabilities. For illiquid investments such as real estate, book value is calculated by analyzing current market conditions, taking into consideration rental rates, the values of similar buildings, as well as current interest rates. When preparing quarterly financial updates, insurance firms reevaluate the value of their real estate holdings. If market conditions change, the firm writes down the book value of the holding to adjust the value to current market conditions.
Thus a real estate write-down in our example can be caused by either a negative change in the overall macro environment, or a micro economic occurrence such as building deterioration.
Why It Matters
Changes in book values caused by write-downs were at the heart of financial company failures caused by the sub-prime crisis. When write-downs occurred, many financial firms needed to raise capital from other sources to maintain their minimum capital obligations.
Companies that could not raise money by selling stock, new debt, or assets, were forced into bankruptcy or forced mergers when their assets could no longer cover their liabilities.
Source: Investing Answers
Law Dictionary
write down
legal Definition of write down
wrote down;
written down;
writing down
: to reduce the book value of (an asset)
- write down accounts receivable
Learn More about write-down
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