Write-off

write-off
The reduction or removal of an asset amount. For example, an account receivable will be removed or written off if the customer is not able to pay the amount owed to the company.
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Write-off
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write-off
charging an asset amount to expense or loss. The effect of a write-off is to reduce or eliminate the value of the asset and reduce profits.

Write-Off
A reduction in the value of an asset or earnings by the amount of an expense or loss.

WRITE-OFF
To remove an asset from the accounting books, as an uncollectible debt. Also, a tax deduction.
DEDUCTIBLE ...

DIRECT WRITE-OFF METHOD - a method of recognition of uncollectible accounts only when known to be such.
DIRECTION - 1. A document containing written instructions to a person to do a certain thing in a certai...

Write-offs
Write-offs are provisions against things that are likely to go wrong. The rule is that bad news has to be charged to the Income Statement as soon as known whereas good news e.g.

Write-Off: Any loan not expected to be recovered and is recorded as a loan loss.
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Write-off:
A term signifying how banks deal with debts of which there is no hope of recovery. When a borrower is bankrupt, his bank writes the loans off its balance sheet by reducing its assets by the value of the loan.

write-off Cancellation of part or all of a balance. Costs incurred that have no future utility are charged (written-off) to an expense or loss account, not carried forward as an asset.

write-off: A charge of an asset amount as an expense or loss in order to reduce the value of that asset and one's earnings.
writer: The seller of an option contract.
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Write-off - Depreciating an asset to zero in one go.
Write up - To increase the recorded value of an asset, but it is not allowed under GAAP (Generally Accepted Accounting Principles) and therefore seldom used.

Direct write-off method
A method of adjusting accounts receivable to the amount that is expected to be collected by eliminating the account balances of specific nonpaying customers.
Indirect method ...

direct write-off method A procedure in which an uncollectible account is removed from the accounts receivable subsidiary ledger and the controlling account in the general ledger when a business determines that the amount owed is not going to be ...

Write-Off
The act of charging an asset amount to expense or loss to reduce or eliminate the value of the asset, which reduces profits.

See: Write-Off
Nonvoting Stock
Corporate securities in which shareholders of such securities have no voting powers--that is, they may not vote on the election of directors or on any corporate resolutions.
See: Voting Right ...

DIRECT WRITE-OFF METHOD
A simple method to account for uncollectible accounts is the direct write-off approach.

Direct write-off (bad debts)
The direct writeoff method of accounting for bad debts is a method whereby bad debt expense is recognized as accounts are written off with no allowance recognized. This method is not normally considered GAAP.

Once the major write-offs are no longer part of the four quarter trailing earnings, the annual earnings return to a forecasted $46.36 for the S&P 500. In addition, Standard & Poor's has raised their forecast for earnings for 2010 from $45.

- certain rapid write-offs
- losses from passive activity investment
- certain itemized deductions (state and local income taxes, real estate taxes, medical expenses not greater than 10% of adjusted gross income) ...

Although the direct write-off method is the easiest to use, it is flawed in several ways. First, the expense or cost of the write-off is not matched with the period in which the revenue is recorded.

double-declining-balance depreciation, sum-of-the-years'-digits depreciation [WCSU] The method of speeding up the write-off from income of qualifying investments at a faster than normal rate.

Accelerated Depreciation "A depreciation method which allows faster write-offs than the straight line... acceleration clause A provision contained within a loan or credit agreement which allows the lender...

Depreciation tax shield The value of the tax write-off on depreciation of plant and equipment. Depressed market Market in which supply overwhelms demand, leading to weak and lower prices.

Loan Loss Rate (Write-offs - Value of Loans Recovered)/ Loan Portfolio, gross, average Loan Portfolio, gross All outstanding principals due for all outstanding client loans.

Depreciation tax shield The value of the tax write-off on depreciation of plant and equipment. Derivative instruments Contracts such as options and futures whose price is derived from the price of the underlying financial asset.

Earnings that are not realized in cash but instead are represented by capitalized selling costs or questionable assets can turn out to be phantom earnings that are later reversed by write-offs.

The term means the same as depreciation, though in practice amortisation tends to be used for the write-off of intangible assets, such as goodwill, while either term is used for the write-off of fixed capital.

The net value of receivables is measured by two methods: the allowance method and the direct write-off method. The former involves establishing a liability account, which reduces the balance for the respective accounts receivable.

Bad debt write-off and recoveries.
Relationship of funds paid to shareholder(s) or partner (s) versus the individual's standard of living (what does this mean?).

A no-questions-asked write-off that reduces taxable income, the amount of which varies depending on your filing status. The standard deduction for 2003 is $9,500 on a joint return, $4,750 on an individual return.

Systematic charges made against earnings to write-off the cost of an asset over its estimated useful life because of wear and tear through use, action of the elements, or obsolescence.

the borrower had a Title IV debt subject to a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off during the five years preceding the date of the credit report ...

As such, they are in a position to offer creditors certain tax write-offs in exchange for their participation, which allows for the negotiation of lowered interest rates.

An irregular event, such as a division write-off or acquisition of another company, that needs to be explained to shareholders in an annual or quarterly report.

A tax break that allows you to write-off the whole cost of certain energy-efficient and water-efficient equipment, and low-emission vehicles, against your taxable profits in the year of purchase.
Enhanced remote transit shed (ERTS) ...

It's been an unforgettable 12 months, with multi-billion write-offs every week, well-established firms collapsing, fire sales, runs on banks, and as near to a totally global systemic meltdown as any of us will ever want to get.

Accelerated Depreciation in Investment, Finance, and Securities - Accelerated depreciation methods would allow higher write-offs at the beginning of an asset's life and lower write-offs at the end of an asset's life compared to standard depreciation ...

Adjust book value due to FAS 106 & 109 write-offs when determining price-to-book ratio for style classification.
Maintenance
Stocks deleted between reconstitution dates are not replaced.

The value of the tax write-off on depreciation of plant and equipment.
Depressed market
A market in which supply overwhelms demand that leads to weak and lower prices.

You might do a swap for several reasons, such as selling one bond at a loss at year's end to get a tax write-off while buying another to keep the same portion of your portfolio allocated to bonds.

Depreciation Tax Shield definition :
The value of the tax write-off on depreciation of plant and equipment.
What's A Spread?
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Tax deduction on lease payments.
Possibility of a faster tax write-off, depending on the payments schedule.
Flexible terms of payment.
Borrowing capacity is not affected since it is an OFF-BALANCE SHEET form of financing.

For example, you might sell one bond at a loss at year's end to get a tax write-off while buying another to keep the same portion of your portfolio allocated to bonds.

MACRS provides for a slightly larger write-off in the earlier years of the cost recovery period.

Amortization An accounting method companies use to write-off intangible rights or assets over the period of their existence.

The occupant receives a portion of the tax write-offs for interest and taxes and a part of his monthly payment is treated as rent. The co-owners divide the profit upon sale of the property. Related: joint ownership agreement.

Accounting for expenses or charges as applicable rather than as paid. Includes such practices as depreciation, depletion, write-off of intangibles, prepaid expenses and deferred charges.top
Annual report ...

Typical barriers to exit include highly specialized assets, which may be difficult to sell or relocate, huge exit costs, such as asset write-offs and closure costs, and inter-related businesses, making it infeasible to sell a part of it.

Important Industry Facts you must consider before handing over the keys to that vehicle! A must read, if you're concerned about getting the most in way of a tax write-off for that car, truck, RV or Boat you're thinking of donating.

Tax Tip: If you are planning to buy an asset and yearend is approaching, buy it before yearend so that you will get the full CCA write-off sooner.

Extraordinary Income/Loss - Entry on corporate financial statements referring to one-time or non-recurring events such as income from the sale of assets or losses from a write-off of inventory.

One use of the merger, for example, is to combine a very profitable company with a losing company in order to use the losses as a tax write-off to offset the profits, while expanding the corporation as a whole.

If you are a business owner, the lender will take a two year average of your income based on the bottom line of your tax returns (after all write-offs).

A loan on which neither interest payments nor repayments of the principal are being made. When a bank has such a loan on its books it can either write it off against profits immediately or make loan loss provisions ready to make such a write-off in ...

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Under Market Value - Homes Priced Under Market Value
What is a write off - Write-off ...

Also, they frequently include items such as restructuring charges, which are costs incurred to close a factory or lay off part of the workforce, for example. They may also include asset write-offs or write-downs, ...

Thus, the class 10 CCA would be 15% in the first year.
Tax Tip: If you are planning to buy an asset and yearend is approaching, buy it before yearend so that you will get the full CCA write-off sooner. ...

The write-down or write-off of the unsuccessful investments early on in the fund's lifecycle serves to amplify the J Curve.

It adds a certain percentage of the asset's initial cost to the full depreciation write-off and is usually given in the year of acquisition or as soon as possible thereafter.

See also: Expense, Job, Tax deduction, Banks, Saving