Why written-down value (WDV) matters to a first-time founder
This amount affects the balance sheet, future depreciation and any gain or loss when an asset is sold. Founders need it for reliable accounts and replacement planning. It can also appear in tax calculations, but tax written-down value may differ from the carrying amount in financial statements.
Examples of written-down value (WDV)
A delivery van costs ₦30 million and has accumulated accounting depreciation of ₦12 million after two years. Its written-down value is ₦18 million before any impairment. If the tax authority allows a different capital allowance schedule, the van’s tax written-down value may be another amount entirely.
Common misunderstanding
It is not the asset’s current market price or the cash a buyer would pay. It is a calculated carrying amount based on recorded cost and reductions. “Net book value” is often used similarly, while local tax systems may use WDV as a defined term with their own rules.
When to use it
Use it when reviewing a fixed-asset register, calculating depreciation, planning a disposal or reconciling accounting and tax records. Always state the date and whether the figure is accounting or tax-based. Ask an accountant about local depreciation, impairment and capital-allowance rules where the distinction matters.