asset writedown

Is this correct: asset writedown this year may indicate that depreciation was too low in prior periods?


I can’ understand, any explanation?

Yes. The asset write-down is an impairment. The PV of future expect CF from the asset is less than the carrying value. Depreciation expense has likely been too low. Robust analysis would involve reclassifying the charge as operating expense like normal depreciation.

is carrying value=historical cost-accumulate depreciation?

Yes. Net value of asset.

Does the future depreciation after asset writedown will be even lower as carrying value goes down?