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write-down

reducing the recorded value of an asset

In Banking & Finance

In more detail

1. (noun) a reduction in the recorded value of an asset on a company's financial statements

2. (verb) to reduce the recorded value of an asset because it is worth less than previously thought

Examples

• 1. The bank announced a major write-down on its real estate holdings.
• 2. The company had to write down the value of its equipment after discovering damage.

How to use write-down

Write-down is primarily used in accounting and finance contexts to describe when a company officially reduces the book value of an asset, typically because market conditions have changed or the asset is worth less than originally valued. It is more technical and precise than the general term depreciation, which refers to gradual value loss over time. The term appears frequently in financial reports, press releases about corporate losses, and analyst discussions.

Register: technical

Common phrases

• take a write-down
• record a write-down
• massive write-down
• write-down charges
• goodwill write-down
• asset write-down

Synonyms

asset reduction · depreciation · devaluation · impairment

Word family

write down (phrasal verb) · written down (adjective)

A common mistake

Learners often confuse write-down with write-off; a write-down is a partial reduction in asset value, while a write-off typically means removing the asset entirely from the balance sheet because it is deemed worthless.

Nearby in Banking & Finance

tranche, underlying, working capital

Keep going

How to remember the words you read · Spaced repetition, explained