Nonledger Asset

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Ledger Balance

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

    A long-term tangible piece of property that a firm owns and uses ...
  3. Intangible Asset

    An asset that is not physical in nature. Corporate intellectual ...
  4. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
  5. General Ledger

    A company's main accounting records. A general ledger is a complete ...
  6. Risk Financing

    The determination of how an organization will pay for loss events ...
Related Articles
  1. Investing

    Off-Balance-Sheet Entities: An Introduction

    The theory and practice of these entities varies greatly. Investors need to learn what they're getting into.
  2. Markets

    Intangible Assets Provide Real Value To Stocks

    Intangible assets don't appear on balance sheets, but they're crucial to judging a company's value.
  3. Professionals

    Financial History: The Evolution Of Accounting

    Follow accounting from its roots in ancient times to the profession we now depend on.
  4. Investing

    What's a Run Rate?

    Run rate is a term used to denote annualized earnings extrapolated from a shorter time frame. Management uses the run rate to estimate future revenues.
  5. Professionals

    Financial Accounting

    Financial accounting is the process of gathering, recording, summarizing and reporting financial data relating to a business. The ultimate goal is to accurately report the financial picture and ...
  6. Investing

    What are Direct Costs?

    Direct costs for finished goods refer to the items and services directly used in production. Other costs such as rent and insurance for the production site are indirect costs. These costs may ...
  7. Investing

    What is Contingent Liability?

    A contingent liability is an amount that might have to be paid in the future, but there are still unresolved matters that make it only a possibility. Lawsuits and the threat of lawsuits are the ...
  8. Investing

    What's Accrued Interest?

    Accrued interest has two meanings. In accounting, it is interest that has been earned, but the time for payment has not yet occurred.
  9. Investing

    What is Absorption Costing?

    Absorption costing is an accounting method primarily used in manufacturing. In absorption costing, the cost of a manufactured product includes the direct costs plus an apportioned share of the ...
  10. Economics

    What Must The UK Do To Keep North Sea Oil Afloat?

    The UK government may need to take drastic action to ensure the viability of UK North Sea offshore oil production amid high costs and shrinking margins.

You May Also Like

Hot Definitions
  1. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  2. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  3. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  4. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  5. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  6. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
Trading Center