writedown

Vocabulary Word

Definition

The term 'writedown' means to lower the book value of an asset because it is overvalued compared to the market value. It's like getting a reality check on what things are actually worth.

Examples in Different Contexts

In the social impact sector, 'writedown' can affect the perceived success of projects. A project manager might declare, 'A writedown on our assets may diminish the perceived impact and value of our projects but it ensures accountability and accurate representation of value.'

Practice Scenarios

Scenario:

With rapid developments in technology, our server equipment has become outdated faster than expected.

Response:

We should writedown these servers and invest in newer, more efficient technology.

Marketing

Scenario:

This controversy has harmed our brand's reputation. Do we come clean or come up with a recovery strategy?

Response:

We should admit the mistake and take a writedown on our brand's goodwill.