Written Down Value

Written down value can be defined as a value of an asset that has been accounted for the amortization and depreciation. The written down value of the asset is also called as the net value or the book value of the asset. In order to calculate the written down value of the asset the amount of accumulated depreciation and amortization is subtracted from the original or the market value of the asset. The present worth or the present market value of the asset is represented by the written down value in terms of accounting and accounting perspectives. The written down value of the asset will also appear on the balance sheet of the company.

In order to calculate the written down value of an asset a number of accountants use a particular method of depreciation that is also known as diminishing balance method of depreciation. With the help of this method or this depreciation technique the value of the asset is decreased by a certain percentage with each and every passing year. In addition to that different types of depreciation techniques are used to calculate the written down value of different kinds of assets. The taxable gain on the sales of an asset is typically calculated by comparing the sales from the written down value of the items. In the case of intangible asset in order to calculate the written down value of the asset the asset is amortized rather then depreciating the asset.

Other Related Accounting Articles:

• Revaluation Method of Depreciation
• Book Value Explained
• Depreciation: Straight Line Biases
• Definition, Explanation and Characteristics of “Depreciation” or “Accounting Depreciation
• What is Depreciation?
• Net Premium Written
• Appraisal Capital Explained
• Net Investment
• Accounting for Capital Lease
• Historical Cost