A write-down is a reduction in the book value of an asset when its fair market value falls below the carrying amount. It reflects asset impairment and is recorded as an expense. Write-downs are common with inventory, receivables, or fixed assets and help maintain accurate financial reporting.
A windfall gain is an unexpected and non-recurring profit, often arising from asset sales, legal settlements, or favourable regulatory changes.…
A white knight is an investor or company that acquires a target firm to prevent a hostile takeover. From an…
Watered stock refers to shares issued at a value significantly higher than the fair value of the company’s net assets.…
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