Expense: Difference between revisions
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imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Expand 4th definition.) |
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3. '' | 3. ''Financial reporting - noun.'' | ||
An item treated as a cost in the current reporting period, when preparing an income statement. | An item treated as a cost in the current reporting period, when preparing an income statement. | ||
4. '' | 4. ''Financial reporting - verb.'' | ||
To account for an item as an expense, rather than capitalising it. | To account for an item as an expense in the current reporting period, rather than capitalising it. | ||
Capitalising an item of expenditure ''defers'' the accounting recognition of the expense into later reporting periods. | |||
==See also== | ==See also== | ||
*[[Accrual]] | |||
*[[Accrued expense]] | *[[Accrued expense]] | ||
*[[Capitalise]] | *[[Capitalise]] | ||
*[[Expenditure]] | *[[Expenditure]] | ||
*[[Expenses]] | *[[Expenses]] | ||
*[[Financial reporting]] | |||
*[[Income statement]] | *[[Income statement]] | ||
*[[Recognition]] | |||
*[[Research & development]] | *[[Research & development]] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
Revision as of 10:30, 16 September 2020
1.
A cost necessarily incurred in performing duties as an employee or independent professional.
2.
More generally, any cost necessarily incurred in order to do something.
3. Financial reporting - noun.
An item treated as a cost in the current reporting period, when preparing an income statement.
4. Financial reporting - verb.
To account for an item as an expense in the current reporting period, rather than capitalising it.
Capitalising an item of expenditure defers the accounting recognition of the expense into later reporting periods.
