Crystallisation

1. Law - security.

In the law of security and charges over assets, crystallisation is the transformation of a floating charge over assets into a fixed charge.

Crystallisation happens on the appointment of an administrative receiver, on the presentation of a winding-up petition, or as otherwise provided for in the document creating the charge.

2. Tax and financial reporting.

In tax and financial reporting, crystallisation is the change of an unrealised gain or loss to a realised one.

See also

• Charge
• Fixed charge
• Floating charge
• Realisation
• Security
• Settlement