Written Down Value

Business, Legal & Accounting Glossary

Definition: Written Down Value


Written Down Value

Quick Summary of Written Down Value


The value of an asset for tax purposes after taking account of it’s reduction in value below the initial cost, as a result of it’s use in the trade.




What is the dictionary definition of Written Down Value?

Dictionary Definition


The book value of an asset after allowing for depreciation and amortization.

 


Full Definition of Written Down Value


The Written-down value (WDV) is the value of an asset for tax purposes after taking account of its reduction in value below the initial cost, as a result of its use in the trade.

An asset acquired for a trade is eligible for capital allowances.

A writing down allowance of 25% is available in the 1st year of purchase, which is deducted from the initial cost to establish the written-down value.

In the following year, the written-down value is subject to the 25% writing-down allowance, which is deducted to arrive at the written-down value at the end of the 2nd year.


Examples of Written Down Value in a sentence


The net value of an asset, i.e. its original cost (its book value) minus depreciation and amortization.


Synonyms For Written Down Value


net book value


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Definition Sources


Definitions for Written Down Value are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 19th November, 2021 | 0 Views.