When an asset is worth less than its book value, the value of the asset in the accounts needs to be adjusted to the actual value. The difference between the value in the balance sheet and the actual value is ‘written off’ the books. This may occur with the disposal of obsolete or obsolescent inventory, when the ledger value and market value differ. If the stock has no value it may be written off to zero value.
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Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
