Non-Cash Charge
A charge off, made by a company against earnings, that does not require an initial outlay of cash. Investopedia Says:
Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. Companies take these charges against earnings due to extraordinary circumstances such as accounting policy changes or significant depreciation of asset's market value.
Any sort of charge will usually result in lower earnings in the period when the charge was made.
Sometimes also referred to as a write down. Related Terms:
Accounting
Balance Sheet
Cash Charge
Charge Off
Earnings
Write Down |