Wertmindernd

Wertmindernd is a German adjective formed from Wert (value) and mindern (to reduce) and describes something that lowers the value of an asset, claim, or portfolio. The term is used in finance, accounting and valuation to indicate effects or factors that decrease value, in contrast to value-enhancing influences. It typically modifies nouns such as Vermögenswert, Forderung, Anlage or Wert.

In practice, wertmindernde factors include physical wear and tear, obsolescence, damage, market downturns, changes in regulation or economic conditions. In valuation and impairment accounting, such effects are considered when estimating recoverable amounts or fair values. If the reduction in value meets the criteria for impairment, an impairment loss may be recognised, reducing the asset’s carrying amount. Depending on the accounting framework, some impairment losses may be reversible if value recovers.

The term is common in German-language financial reporting, corporate guidance and tax-related writings. In English-language contexts, the corresponding concepts are typically described as impairment or value impairment. It is important to distinguish wertmindernd from wertsteigernd (value-enhancing) and from the noun Wertminderung, which denotes the impairment itself rather than the attribute describing it. Wertmindernd thus serves as a concise descriptor of circumstances or events that reduce the value of assets or claims in accounting and valuation discussions.