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what does it mean when a company announces a "write off" or "takes a charge"?
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what does it mean when a company announces a "write off" or "takes a charge"?

Hi John!

A write off is the reduction (to zero) in the value of an asset from a company's financial statement. Companies don't like to do this, however, as doing so cause profits to shareholders to be reduced.

Hope this helps!

Tony
...but I still am...

Off2Aruba
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Tony --

Isn't it a bit more complicated than that? Doesn't the term also include posting losses or expenses that might, under normal accounting principles, have been spread over a number of quarters or years, but are charged to a particular period, like paying one's mortgage off in advance?

dh
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Tony --

Isn't it a bit more complicated than that? Doesn't the term also include posting losses or expenses that might, under normal accounting principles, have been spread over a number of quarters or years, but are charged to a particular period, like paying one's mortgage off in advance?


Yep, actually it is, but I just gave a basic response to the question. ;)

It includes what you've stated also, dh, and for a more complete explanation, I'd think the answer could better be explained by an accountant-geek like our illustrious TMF Taxes over on our Tax Strategies board.

How's that for ducking a question. ; )

Tony
...but I still am...

Off2Aruba
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