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There is no statutory provision that would justify the valuer taking account of any arbitrary written-down value that might have been agreed for other purposes.
In the old days, one could work out in five minutes the written-down value of a tractor.
Their market price has been higher but their written-down value was £80 million.
When a new asset is bought the first-year allowance is given and the written-down value goes into the pool.
Is not it desirable that the written-down value of machinery should bear some relation to what it actually fetches when it is traded in?
That is the depreciated value, the written-down value, and that is the value which will be accepted.
The original cost of the equipment included in the auction sale was £62,906 and the written-down value at the date of the sale was £16,689.
I said, "the written-down value"—that is, the book value.
It is perhaps coincidental that that is the same amount as the written-down value of the physical assets that were acquired.
What really weighed with us was that we felt that in these days it was extremely unlikely that the industrial assets would be worth less than the written-down value.
In some cases, the new stock issued will be in excess of the written-down value of these assets; in other cases, it may be considerably below that value.
I instanced the case where there was a capital allowance asset with a written-down value of £1,000 and subsequent annual allowances of £100, bringing the new written-down value to £900.
This is not a lot of money but is probably considerably more than their written-down value in relation to what many of them cost in the first place.
The statutory reserve in clause 7 will be set at the difference between the written-down value of public dividend capital—say, £2 billion—and the nominal value of the shares.
