You bought a stock at $100 and written off $60.This did not mean your cash anount at your balance is reduced $60.
If you have at your balance statement ;Stock $100 ,cash $70 and written off the stock $60
After written off at the balance
Stock $40.cash $70.
Written off cost $60 should be reflected at the P/L as you told.
If you sell $40 stock at $40.
At the balance;stock $0,cash $40.
Written off $60m did not mean DSH's cash reduced by $60m but it meant DSH's stocks value reduced by $60m as you know and reflected as loss or expenses at P/L.
IMO,you know the accounting but intend to say written off reduced cash amounts.
It is defenitely written off itself does not reduce the actual cash amount directly,it reduced the stock values on the balance book but increase the expenses or loss figures only.
DSH held the same cash amoumts and the same kinds and quantity stocks after and before written off $60m,if DSH did not buy or sell stocks.
DSH Price at posting:
35.5¢ Sentiment: Hold Disclosure: Not Held
