Nonrecurring Charge

AAA

DEFINITION of 'Nonrecurring Charge'

An entry that appears on a company's financial statements for a one-time expense that is unlikely to happen again. A nonrecurring charge is a one-time charge for an unpredictable event.


Also known as a nonrecurring item.

INVESTOPEDIA EXPLAINS 'Nonrecurring Charge'

Nonrecurring charges appear on a company's financial statements under operating expenses. The company's earnings are correspondingly reduced for the time period shown in the financial statement; however, notations will make it clear that the nonrecurring charge is for a one-time, unusual event, and should not be considered an expense that the company will be exposed to again in the future. An example of a nonrecurring charge would be costs associated with replacing windows following a natural disaster.

RELATED TERMS
  1. One-Time Item

    An accounting item in a company's income statement that is non-recurring ...
  2. Discontinued Operations

    A segment of a company's business that has been sold, disposed ...
  3. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  4. Expense

    1. The economic costs that a business incurs through its operations ...
  5. Extraordinary Item

    Gains or losses included in a company's financial statements, ...
  6. Write-Down

    Reducing the book value of an asset because it is overvalued ...
Related Articles
  1. Markets

    Material Adverse Effect A Warning Sign For Stocks

    Learn what this phrase means and how to spot it in a company's financial statements.
  2. Investing Basics

    12 Things You Need To Know About Financial Statements

    Discover how to keep score of companies to increase your chances of choosing a winner.
  3. Professionals

    Warning Signs Of A Company In Trouble

    Don't let your clients go down with ship! Learn how to escape sinking with these tips.
  4. Fundamental Analysis

    Financial Footnotes: Start Reading The Fine Print

    Find out what could be hidden in this often-overlooked part of the financial statements.
  5. Active Trading

    Evaluate Stock Price With Reverse-Engineering DCF

    This is a more accurate method to use when trying to find a target price for a stock.
  6. Fundamental Analysis

    Understanding Pro-Forma Earnings

    These figures can either shed light on a company's performance or skew it. Find out why.
  7. Fundamental Analysis

    Impairment Charges: The Good, The Bad And The Ugly

    Impairment charge is a term for writing off worthless goodwill, but you need to know what its potential impact is on EPS.
  8. Forex Education

    Understanding The Income Statement

    Learn how to use revenue and expenses, among other factors, to break down and analyze a company.
  9. Fundamental Analysis

    Understanding The Federal Reserve Balance Sheet

    We are all connected to the Fed's balance sheet, and the currency notes that we hold are its liabilities.
  10. Charts & Patterns

    Why These Could Be 2015's 10 Best Biotech Stocks

    A quick look at a 10 biotech companies that are poised to deliver for shareholders in 2015.

You May Also Like

Hot Definitions
  1. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  2. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  3. 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 ...
  4. 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 ...
  5. Hurdle Rate

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

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