Investor Glossary-one time chargeInvestor Glossary-one time chargeInvestor Glossary-one time chargeInvestor Glossary-one time chargeInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

One Time Charge

The HTML to link to this page
 

A one time charge is a charge against earnings that is unusual in nature and not expected to reoccur. An example of a one time charge is the costs of closing a plant damaged by an earthquake. Unlike a one-time charge, normal expenses -- like cost of goods sold and SG&A -- are part and parcel of the regular, ongoing activities of the business. A one-time charge is distinguished from such normal expenses by presenting it as an extraordinary item on the income statement. Companies thus have a strong incentive to present expenses as a one time charge: If investors consider an item a one-time charge, they will discount it and exclude it from their earnings estimates for future periods. In this fashion, classifying an item as a one-time charge can increase EPS estimates and valuations. It's not surprising firms sometimes attempt to classify expenses that are part of their normal business activities and may indeed reoccur - such as an inventory write-downs -- as a one-time charge. Note that a one-time charge is also called a nonrecurring charge.



Rate this one time charge definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: real GDP, inflation, phantom income, liquidity ratio, per diem, retained earnings, FICO score, Key Rate Duration, Zero Cost Collar, deferred tax, covered put, labor relations, irrevocable trust, ex-dividend date, minority interest, option premium, command economy, 1031 exchange, 1035 exchange, 401a, dividends payable, risk management, current ratio, LIBOR, balance sheet, open position, VIX, implied volatility, EBITDA, in escrow, 144a, margin rate, stock market close, quality assurance, reverse mortgage, stock split, diluted share, wholly-owned subsidiary, required rate of return, average price per share, debt service coverage, APR, annual return, ex-dividend, cancelled check, deferred revenue, FTSE, limit order, class C shares


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use