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. Write-Down

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

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

    Gains or losses included in a company's financial statements, ...
Related Articles
  1. Material Adverse Effect A Warning Sign ...
    Markets

    Material Adverse Effect A Warning Sign ...

  2. 12 Things You Need To Know About Financial ...
    Investing Basics

    12 Things You Need To Know About Financial ...

  3. Warning Signs Of A Company In Trouble
    Professionals

    Warning Signs Of A Company In Trouble

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

    Financial Footnotes: Start Reading The ...

Hot Definitions
  1. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  2. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  3. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center