What is meant by Write-Off?         The process of write-off mostly refers to eliminating the assets—both current assets and non-current assets from the Financial Statements of the company. The main reason as to why assets are written off from the Balance Sheet mostly revolves around the attempt to accurately depict the actual financial position of the […]

What is meant by Write-Off?     Write-Off can be defined as the process undertaken by accountants to remove a specific asset from the financial statement. This is primarily resulting from the underlying need to record the given asset at fair value, so that a better, and more accurate depiction can be declared in the financial statements.

The write-off is one of the most renowned accounting treatments, but most of us don’t know the exact cause of bringing things into this treatment.  If an asset has no worth, it should be written off. Consider on the off chance that a resource’s worth perseveringly reduces and is diminished to nothing; it will become

When talking of accounting, there are a lot of terms that people don’t get right. Similarly, write off and write down are two complicated accounting terminologies. Write off and write down are somehow similar but not the same. Write-off deducts both the current and upcoming value of an asset. In contrast, write down minimizes the

Write off and write back are two different accounting treatments. Both of these occur in the company’s books depending upon the present situations.  Write off and write back are different accounting treatments. Once an asset is written off, only then it can be written back under certain conditions. An asset is written off once its

Definition of a Contract Liability Contract Liabilities are also referred to as deferred or unearned revenue. A contract liability is basically an obligation on the part of the entity to transfer goods and services to a given customer for which the entity has already received consideration from the customer. In other words, contract liability is

Definition of a Contract Asset Contract Asset can be defined as an entity’s right to consideration in exchange for goods and services that the entity transfers to a customer, particularly in the case when the right is conditioned on something other than the passage of time. Therefore, this implies that contract asset is created in

During the normal course of business, it is regular for businesses to sell goods on credit. When businesses sell on credit, they create Accounts Receivables, which include all the details regarding the amount that is due from customers. Normally, customers do pay back their dues. However, there are instances where a customer defaults and is

Definition of Property, Plant and Equipment Property, Plant, and Equipment can be defined as physical (or tangible) assets that are possessed by the company in the longer run. They typically have a life of more than 1 year. They are also referred to as Fixed or Non-Current Assets. Property, Plant, and Equipment are mostly the