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GlossaryFinance

What is a write-off?

Also known as: asset write-off, write off, write-down.

Definition

A write-off removes an asset from the books when it is lost, stolen, destroyed or worthless, recognizing its remaining NBV as a loss.

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A write-off is a disposal with nothing received. When an asset is confirmed lost or stolen after an audit, destroyed, or no longer has any use or value, it is removed from the register and its remaining NBV is charged as a loss. A write-down (impairment) is different: the asset stays on the books at a reduced value.

Example
A laptop with NBV $450 is reported stolen and not recovered.
Write-off: remove cost and accumulated depreciation; recognize a $450 loss (any insurance recovery is accounted for separately).

Controls

  • Investigate before writing off — check custody, check-outs and movement history
  • Require approval from the asset owner or finance
  • Keep evidence: audit results, police reports, insurer correspondence

In Asetavo

Missing items from audits can be investigated through each asset's history, then retired as a disposal with the loss recorded and a full audit trail.

In practice

Want to understand this in practice?

GuideHow to run a physical asset auditPlan, count, reconcile and close out a stock-take — including what to do with missing and unregistered items.Read the guide →
Related features
AuditsDepreciation
Related terms
DisposalDisposal is removing an asset from use and from the books — by sale, scrapping, donation or trade-in — and recording any gain or loss against NBV.NBVNet book value (NBV) is an asset’s cost minus its accumulated depreciation (and any impairment) — the value it is carried at on the balance sheet.Ghost assetA ghost asset is recorded in the register (and often still on the books) but no longer physically exists or cannot be found.VarianceA variance is a difference between what the register says and what a count finds — missing, unregistered or wrong-location assets.Inventory reconciliationInventory reconciliation compares physical count results with the register, explains each difference and corrects the records with approval.
From definition to done

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