Nonrecurring Gain Or Loss

Dictionary Says

Definition of 'Nonrecurring Gain Or Loss'


A one-time or highly infrequent profit or loss. One-time gains or losses are reported separately in a coporation's income statement - net of income taxes - and are not shown to affect earnings per share (EPS).

Also referred to as "extraordinary charges" for accounting purposes.

Investopedia Says

Investopedia explains 'Nonrecurring Gain Or Loss'


Capital gains from the sale of land or casualty losses are items that are often seen as nonrecurring gains and losses. Write-offs or write-downs relating to normal business expenses (i.e. inventory) are not be considered nonrecurring losses unless they are due to one-time events, such as a natural disaster.

Investors need to carefully examine a company's financial statements to see what types of nonrecurring gains and/or losses a holding posts and how frequently they engage in these types of transactions. While by their very nature nonrecurring gains and losses are meant to occur very infrequently, the reality is that companies often report these types of expenses.

comments powered by Disqus
Hot Definitions
  1. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  2. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  3. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  4. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
  5. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
  6. Maritime Law

    A body of laws, conventions and treaties that governs international private business or other matters involving ships, shipping or crimes occurring on open water.
Trading Center