ClearConcept — A-Level Revision

Specification Reference

Write-Off

Foundation

Plain English

Removing asset from books when deemed worthless.

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Real World

During the 2020 pandemic, Rolls-Royce wrote off £1.3bn in inventory and contracts, reducing profit but giving a more accurate picture of asset values on its balance sheet.

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Exam Focus

Distinguish write-off (full removal) from depreciation (gradual reduction); examiners penalise mixing the two.

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