Define: Written Down Value

Business, Legal & Accounting Glossary

Definition: 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.

 


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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.


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https://payrollheaven.com/define/written-down-value/
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Written Down Value. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 07, 2020 https://payrollheaven.com/define/written-down-value/.
Chicago Manual of Style (CMS):
Written Down Value. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/written-down-value/ (accessed: April 07, 2020).
American Psychological Association (APA):
Written Down Value. PayrollHeaven.com. Retrieved April 07, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/written-down-value/

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: 22nd March, 2020