Write-Off

An accounting action whereby a business reduces the value of an asset to zero, indicating it has no future benefit.

In Cyprus, a write-off involves removing an asset from the company books, acknowledging that the asset has lost all its value and will not provide future benefits. This can occur due to asset impairment, obsolescence, or uncollectible receivables. Write-offs are reflected in the company’s income statement as an expense, reducing net income. Properly accounting for write-offs is important for maintaining accurate financial records and assessing the company’s financial health.

Back to Glossary