Definition
A Write-Up is an accounting action resulting in the increase of the book value of an asset because it is undervalued compared to the market value, adjusting the asset`s valuation to reflect its true worth.
Frequently asked questions
What is write-up in book value?
A write-up in book value is an increase in the recorded value of an asset when its market value is higher than its book value.
What if book value is higher than market value?
If book value is higher than market value, it may indicate that the asset is overvalued on financial statements or that the market is undervaluing the asset.
What causes book value to increase?
Book value increases when a company keeps earnings, acquires assets, or revalues existing assets upward.