avskriving x nedskriving

English translation: depreciation x impairment

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Norwegian term or phrase:avskriving x nedskriving
English translation:depreciation x impairment
Entered by: Salvador Scofano and Gry Midttun

13:30 Sep 20, 2016
Norwegian to English translations [PRO]
Bus/Financial - Accounting
Norwegian term or phrase: avskriving x nedskriving
I have difficulties with the 2 terms. Especially because some dictionaries provide the same translation for the terms, but definitely they are different things.

Ex. 7. Annen driftskostnad, av- og nedskriving. 8. Finansinntekt og kostnad, ekstraord. Inntekt og kostnad. 10. Immaterielle eiendeler ol. 20.


Thanks in advance!
Salvador
Salvador Scofano and Gry Midttun
Norway
Local time: 14:12
depreciation x impairment
Explanation:
Depreciation is usually scheduled over time and refers only to the fall in value of an asset associated with the passage of years.

Impairment is a real loss in value based on actual information that the value of an asset has fallen in real terms of resale/recovery value.
Selected response from:

Paul Lambert
Sweden
Local time: 14:12
Grading comment
Thanks to all of you!
4 KudoZ points were awarded for this answer



Summary of answers provided
5 +2depreciation x impairment
Paul Lambert
5depreciation/amortisation
Charlesp
3 +2depreciation, write down
Leif Henriksen
4 -1write-off vs. write-down
Adrian MM. (X)


Discussion entries: 1





  

Answers


3 mins   confidence: Answerer confidence 5/5 peer agreement (net): +2
depreciation x impairment


Explanation:
Depreciation is usually scheduled over time and refers only to the fall in value of an asset associated with the passage of years.

Impairment is a real loss in value based on actual information that the value of an asset has fallen in real terms of resale/recovery value.

Paul Lambert
Sweden
Local time: 14:12
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 11
Grading comment
Thanks to all of you!

Peer comments on this answer (and responses from the answerer)
agree  Chris S
5 hrs
  -> Thank you, Chris

agree  Charlesp: yes, exactly.
23 hrs
  -> Thank you, Charles
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7 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +2
avskriving, nedskriving
depreciation, write down


Explanation:
Avskriving = depreciation, mainly based on taxation rules
Nedskriving = write down, mainly based on a factual reduction in value of an asset


    Reference: http://www.investopedia.com/terms/w/writedown.asp
Leif Henriksen
Norway
Local time: 14:12
Native speaker of: Native in NorwegianNorwegian, Native in Norwegian (Bokmal)Norwegian (Bokmal)
PRO pts in category: 24

Peer comments on this answer (and responses from the answerer)
agree  Paul Lambert: Sure, "write down" works as well.
1 hr

agree  Chris S
5 hrs

neutral  Charlesp: I've been thinking about this, and I don't think that "write down" is what is meant here in this context with nedskriving. It could be "write down," if it was stated independently, and as a separate category.
23 hrs
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1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): -1
write-off vs. write-down


Explanation:
Lingusitically and financially, an 'obvious' distinction.

NB a capital allowance in the UK is a writing-down and not write-off mechanism.

--------------------------------------------------
Note added at 16 hrs (2016-09-21 06:02:51 GMT)
--------------------------------------------------

amount written off on reducing-balance vs. straight-line depreciation: https://books.google.at/books?id=tSwrDAAAQBAJ&pg=PA210&lpg=P...


    Reference: http://www.investopedia.com/ask/answers/070715/what-differen...
Adrian MM. (X)
Local time: 14:12
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 49

Peer comments on this answer (and responses from the answerer)
neutral  Chris S: False friend /// Your amended answer is technically OK but still potentially misleading I feel given the very different alternative meaning; depreciation is the standard term, so why not use it? The asker is really only asking about nedskrivning anyway...
4 hrs
  -> It's not write-off in the sense of 'utrangeringar' but amount written off assets on reducing-balance or straight-line depreciation (cf. my added note) vs. amount written down you seem to have accepted 'as a false friend' on Leif's answer.

disagree  Charlesp: yea, that's not the proper terminology // I don't see how you get "write-off" from"avskriving"
22 hrs
  -> they are both a linguistic and a cost-accounting fit in terms, as mentioned, of amount(s) written off and down.
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23 hrs   confidence: Answerer confidence 5/5
depreciation/amortisation


Explanation:
nedskriving may refer to amortisation of goodwill (a form of depreciation).

As there is no such thing as depreciation of goodwill, these two terms are used in conjunction with each other, one for tangible/material assets and the other for intangible assets. But together they mean the same thing.

However goodwill is no longer permitted to be amortised. Instead an impairment test needs to be made every year. That is why "impairment" should usually be used as the term, and not amortisation.

However, and this is a bit complicated, as for certain types of companies, straight-line amortisation of goodwill is still allowed. (see FASB Accounting Standards Update No. 2014-02, Intangibles—Goodwill). But this only applies to private companies.

Charlesp
Sweden
Local time: 14:12
Specializes in field
Native speaker of: English
PRO pts in category: 12

Peer comments on this answer (and responses from the answerer)
neutral  Chris S: To keep the asker sane: Amortisation is *not* an alternative translation of nedskrivning // With goodwill you're looking at impairment // No, amortisation of goodwill would be avskrivning
16 mins
  -> Then how would you translate "nedskriving of goodwill"?// I agree that "nedskriving" is "impairment" -- for public companies However for private companies, it is "amortisation" (in this context)
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