Write-Off
Removing asset from books when deemed worthless.
Real World
HSBC wrote off $10.6bn in goodwill in 2019 related to its European and US investment banking operations, immediately wiping billions from its balance sheet and turning that year's results into a loss.
Exam Focus
Explain both impacts of a write-off — reduced asset value on the balance sheet AND reduced profit on the income statement — for full marks.
How well did you know this?