Write Up

Key Highlights

• A write-up occurs when a company adjusts the book value of an asset upward on its balance sheet to reflect an increase in the asset’s market value above its previously recorded value.

• This adjustment makes the asset’s value more accurate. It often happens during mergers or acquisitions, or when an asset was previously undervalued.

What is Write Up?

A write-up occurs when a company adjusts the book value of an asset upward on its balance sheet to reflect an increase in the asset’s market value above its previously recorded value. This adjustment makes the asset’s value more accurate. It often happens during mergers or acquisitions, or when an asset was previously undervalued.

Key Points

• It is a paper adjustment—no actual cash changes hands.

• It might create future tax liabilities due to higher depreciation.

• It is usually a one-time tweak, not a sign of better business performance.

Example

After buying another company, a business might record a $25 million write-up to reflect the true, higher value of the acquired assets.