Write-Off

A write-off removes an asset's value from the books once it's clear the value isn't there — an uncollectable invoice, obsolete inventory, a failed project. If a provision was already made, the write-off itself doesn't touch profit; if not, it lands in full. Companies often bundle write-offs into one large 'big bath' charge in a bad quarter, on the logic that a single terrible number is easier to explain than several mediocre ones.