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-	{{def}}	+	A write-down is what occurs when a company reduces the value of an asset on their books. This results in a charge against earnings. For instance, if a company has a building on their books valued at $1,000,000 but an internal audit reveals that its market value is actually $800,000, this would result in a $200,000 write-down which would be deducted from reported earnings. Successive increases in value of the same asset would be charged to earnings.

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Revision as of 00:54, February 25, 2008

A write-down is what occurs when a company reduces the value of an asset on their books. This results in a charge against earnings. For instance, if a company has a building on their books valued at $1,000,000 but an internal audit reveals that its market value is actually $800,000, this would result in a $200,000 write-down which would be deducted from reported earnings. Successive increases in value of the same asset would be charged to earnings.

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