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. Surcharge

    A fee or other charge that is added to the cost of a good or ...
  4. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  5. Write-Down

    Reducing the book value of an asset because it is overvalued ...
  6. Expense

    1. The economic costs that a business incurs through its operations ...
Related Articles
  1. Warning Signs Of A Company In Trouble
    Professionals

    Warning Signs Of A Company In Trouble

  2. Financial Footnotes: Start Reading The ...
    Fundamental Analysis

    Financial Footnotes: Start Reading The ...

  3. Evaluate Stock Price With Reverse-Engineering ...
    Active Trading

    Evaluate Stock Price With Reverse-Engineering ...

  4. Understanding Pro-Forma Earnings
    Fundamental Analysis

    Understanding Pro-Forma Earnings

comments powered by Disqus
Hot Definitions
  1. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
  6. Floating Exchange Rate

    A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that ...
Trading Center