Holding Loss

Holding Loss

A decrease in the value of an asset or an increase in the value of a liability that occurs without any action on the part of the holder. For example, if the value of one's house decreases from $150,000 to $100,000 over three years, one has a holding loss of $50,000 over that period. Holding losses reduce one's net worth.
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The report said, 'In the worst case, a limited recovery rate could indicate that the interventions led to major irreversible losses, as in the case of Cyprus, with a holding loss for the government on equity instruments amounting to 10.
Since beginning of privatization process, the successive governments have successfully sold out a large number of public sector entities and also divested government holdings but a question often arises, why the government is selling its stake in profit making entities and still holding loss making entities?
If reasonable expectations are that the price of land will remain stable in the future, and that sales of two parcels per year at $90,000 each can be expected to continue, it is necessary to isolate the realized holding loss included in income and remove it from the earnings base:
Replacement cost of parcels sold $60,000 Cost of sales $100,000 Realized holding loss (net of taxes) $24,000 Net income $48,000 Realized holding loss (net of taxes) $24,000 Operating income $72,000
By contrast, the BOJ recorded its first current-account deficit in 32 years, mainly due to a huge holding loss of 1.
Because market prices have declined, the taxpayer may have little or no gain for regular tax purposes, but may have a holding loss for AMT purposes.
If a net holding loss exists, a deferred tax asset is recorded.
For equity security A, the unrealized holding loss is as before, $4,000.
4(th) Quarter EBITDA negatively impacted by an inventory holding loss of $24.
A temporary change in fair value of available-for-sale investments resulted in an unrealized holding loss which is excluded from earnings and recorded in the "other comprehensive income (loss)" component of shareholders' equity.
115, Accounting for Certain Investments in Debt and Equity Securities, ("FAS 115"), a temporary change in fair value results in an unrealized holding loss being recorded in the "other comprehensive income (loss)" component of shareholders' equity.