Deferred charge

Deferred charge

An expenditure treated as an asset that carries forward until it becomes pertinent to the business at hand, e.g., the underwriting fees on a corporate bond issue, which the corporation capitalizes as a deferred charge and then amortizes over the life of the bond issue.

Deferred Charge

An asset on a balance sheet that comes about from a business making payment for a good or service it has not yet received, but will in the near future. Prepaid expenses are expensed over time as the goods or services are received. A common example of a prepaid expense is an insurance policy. Another example is a lump sum payment for rent; if a company pays for a year's worth of rent in advance, it is recorded as a deferred charge. A deferred charge is also called a prepaid expense.
References in periodicals archive ?
In essence, it clarifies whether restructuring costs should be treated as a current period expense or as a deferred charge to be amortized over future periods.
The cumulative effect of adopting this accounting change in fiscal year 2005 would also change as the deferred charge balance at November 1, 2004 would have increased from the Company's previously issued financial statements reflecting the additional deferred charges.
Before New Standards: Reported as deferred charges (assets).
Consequently, constrained current fund operations were evident in the form of annual deferred charges or operating deficits, approximating $2 million, during that time.
However, though the FASB did not object to AcSEC's undertaking this project on start-up costs, board members expressed concern that the FASB might not be able to support AcSEC's conclusions because the board had not specifically decided how its conceptual framework on assets applies to deferred charges.
Deferred income tax assets and liabilities represent assets and liabilities, not residual deferred charges and credits.
for the refinancing of existing loans ($1,913,600), one-time cash expenses for the refinancing of existing loans ($539,300) and amortization of deferred charges ($643,700).
Moreover, free capital is limited when fixed and foreclosed assets and deferred charges are considered.