Nonledger Asset


DEFINITION of 'Nonledger Asset '

Something of value owned by an insurance company that is not recorded in that company's formal accounting records. Nonledger assets are basically money that an insurance company expects to receive but hasn't actually received yet. Both ledger assets and nonledger assets are reported on the insurance company's annual statement. In addition to reporting assets, this statement also reports the insurance company's income, disbursements and liabilities for the year.

BREAKING DOWN 'Nonledger Asset '

An insurance company's nonledger assets may consist of unpaid assessments, dividends due and accrued, interest due and accrued, and the market value of stocks owned in excess of their book values. Ledger assets include cash in a company's office, cash in the bank but not reflected on the balance sheet, premiums due and the book value of notes, bonds and other securities.

  1. Ledger Balance

    The balance of a customer account as shown on the bank statement. ...
  2. Intangible Asset

    An asset that is not physical in nature. Corporate intellectual ...
  3. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses ...
  4. General Ledger

    A company's main accounting records. A general ledger is a complete ...
  5. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
  6. Accountant

    A professional who performs accounting functions such as audits ...
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