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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In the case of BHP, the Australian mining company took a big hit during the recent oil bust, writing down the value of its shale assets by $7 billion two years ago.
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According to her complaint, supervisors declined D’Onofrio’s requests to have an interpreter or to have communications written down for her.
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Kiosks are also offered in the warehouse for looking up items if someone forgot to write down the product number while browsing the showcase.
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Mayfield was interested but didn’t write down the digits.
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But the continuing success of general relativity, first written down a century ago, must surely be celebrated as one of the most incredible intellectual achievements of our species.
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This is an extraordinary moment in the life of America’s constitution which, though written down, has meanings that the justices find to be ever-changing.
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The teens tried to leave an eatery without paying, and the restaurant manager wrote down the Buick's license plate number, police stated.
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New moons are perfect nights to write down intentions or make a vision board for your dreams.
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
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