Listen to a Business English Dialogue About Write up
Jeffrey: Hey Allison, have you ever heard of a “write up” in business and finance?
Allison: No, I haven’t. What does it mean?
Jeffrey: A “write up” refers to an increase in the value of an asset or an adjustment to the value of an asset to reflect its true worth.
Allison: So, it’s like when the value of an asset goes up over time?
Jeffrey: Exactly. It can happen due to various reasons, such as an increase in demand, improved financial performance, or a favorable change in market conditions.
Allison: Are there any specific types of assets that are commonly subject to a “write up”?
Jeffrey: Yes, assets like real estate, stocks, and goodwill are often subject to write ups when their values increase.
Allison: How do companies account for write ups in their financial statements?
Jeffrey: Companies typically record write ups as an increase in the value of the asset on their balance sheets, which can positively impact their overall financial position.
Allison: Can write ups also affect a company’s income statement?
Jeffrey: Yes, if the write up results in higher depreciation or amortization expenses, it can impact a company’s net income and earnings per share.
Allison: Are there any regulations or guidelines governing write ups?
Jeffrey: Yes, accounting standards such as Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) provide guidance on how to account for write ups in financial statements.
Allison: Thanks for explaining, Jeffrey. It’s interesting to learn about how companies adjust the value of their assets.
Jeffrey: You’re welcome, Allison. Write ups play an important role in accurately reflecting the value of assets and ensuring transparency in financial reporting.