write-down

n. Accounting
A reduction of the entered value of an asset.

Reducing the book value of an asset because it is overvalued compared to the market value.

Investopedia Says:
This is usually reflected in the company's income statement as an expense, thereby reducing net income.

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Revaluation of securities, loans, or other assets when the market value is lower than the book value at which the asset is carried. Marketable securities carried as Trading Account Assets for a bank's trading account or held for other institutions must be adjusted to market value (Mark to the Market) daily, by either writing down or writing up. Loans and leases are carried to maturity at the original book value, unless a bank is required to write down their value by a banking regulatory agency.

To diminish in amount on the records, generally to reflect a Market Value loss.Example: Bank auditors, upon discovering that a certain Mortgage was worthless, insisted on a write-down. The bank recorded the value decline as a bad debt expense.

Table 58 Wraparound Mortgage

Seller gets $50,000 cash from buyer

and $50,000 cash from wraparound lender.

Wraparound lender makes

payments on existing mortgage.

Buyer makes payments on

wraparound mortgage.

Wraparound lender gets payment of

$1,158

-644

____

$514 per month on $50,000

outlay for a yield over 25

years of 11.66%.

Reduction of part of the balance of an asset by charging an expense or loss account. The reason for a write-down is that some economic event has occurred indicating that the asset's value has diminished. An example is the obsolescence of some inventory.

noun

A lowering in price or value: depreciation, devaluation, markdown, reduction. See increase/decrease, money.

1.  Set down in writing, record, as in Please write down your new address and phone number. [Late 1500s]
2.  Reduce in rank, value, or price, as in They've written down their assets. [Late 1800s]
3.  Write in a simple or condescending style, as in These science texts are written down for high-school students. [Second half of 1800s]

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Dansk (Danish)
n. - nedskrivning

Nederlands (Dutch)
afschrijving

Français (French)
n. - réduction de valeur

Deutsch (German)
n. - Abschreibung

Ελληνική (Greek)
n. - μείωση της λογιστικής αξίας στοιχείων του ενεργητικού

Italiano (Italian)
ammortamento

Português (Portuguese)
n. - redução (f)

Русский (Russian)
уценка, снижение номинальной цены

Español (Spanish)
n. - depreciación de un activo

Svenska (Swedish)
n. - nedskrivning

中文（简体）(Chinese (Simplified))
资产帐面价值的减低

中文（繁體）(Chinese (Traditional))
n. - 資產帳面價值的減低

한국어 (Korean)
n. - 평가 절하, 상각

日本語 (Japanese)
n. - 評価切り下げ, 償却

العربيه (Arabic)
‏(الاسم) تخفيض قيمه الموجودات‏

עברית (Hebrew)
n. - ‮ירידה בשער הנקוב או המוערך של מניות, נכסים וכו', תרשומת‬

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