Holding Loss

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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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unaudited) (audited) (unaudited) Notes [pounds]'000 [pounds]'000 [pounds]'000 Fixed assets Investments at fair value through profit or loss 6 14,154 15,873 17,923 Current assets Debtors 761 457 1,747 Cash at bank 6,150 8,900 7,618 6,911 9,357 9,365 Creditors: amounts falling due within one year (364) (200) (367) Net current assets 6,547 9,157 8,998 Net assets 20,701 25,030 26,921 Capital and reserves Called-up equity share capital 5,519 5,519 5,538 Share premium account 150 150 150 Capital redemption reserve 765 765 746 Special reserve 21,524 22,685 23,068 Investment holding losses (7,431) (7,941) (6,697) Profit and loss account 174 3,852 4,116 Total equity shareholders' funds 20,701 25,030 26,921 Net asset value per share 7 18.
In the business year that ended March 31, however, these holding losses by banks were apparently offset by rising stock prices.
Due to current market conditions, many taxpayers have significant holding losses for alternative minimum tax (AMT) purposes on stock acquired from exercising an incentive stock option (ISO).
The current requirement to use the amortized cost method permits the recognition of holding gains through the selective sale of appreciated securities but does not require the concurrent recognition of holding losses.
unaudited) (audited) (unaudited) Notes [pounds]'000 [pounds]'000 [pounds]'000 Fixed assets Investments at fair value through profit or loss 5 15,976 17,743 19,045 Current assets Debtors 1,250 282 903 Cash at bank 6,204 6,136 6,310 7,454 6,418 7,213 Creditors: amounts falling due within one year (247) (132) (158) Net current assets 7,207 6,286 7,055 Net assets 23,183 24,029 26,100 Capital and reserves Called-up equity share capital 773 775 780 Share premium account 339 339 339 Capital redemption reserve 91 89 84 Special reserve 19,717 20,056 20,305 Investment holding losses (13,124) (12,962) (11,154) Merger reserve 12,615 12,615 12,615 Profit and loss account 2,772 3,117 3,131 Total equity shareholders' funds 23,183 24,029 26,100 Net asset value per share 6 30.
The strong rally has removed a big worry for banks and businesses: holding losses on their stock portfolios.
The $1,029,003 first quarter increase in retained earnings was partially offset by a decline in accumulated other comprehensive income of $296,765 due to recognition of unrealized holding losses on securities, and the repurchase of 50,000 shares of common stock for $225,000 during the quarter.
In addition, fourth quarter results were impacted by the economic contraction as well as inventory holding losses in Aromatics driven by benzene and propylene price declines.
As at 31 December 2009, the Company had accumulated investment holding losses (net of gains) of [pounds]12,962,000 (31 December 2008: [pounds]9,937,000) and retained a positive balance on its profit and loss account of [pounds]3,117,000 (31 December 2008: positive balance of [pounds]3,518,000).
In the fiscal year ended March 31, the top 10 insurers booked nearly 400 billion yen in holding losses -- a sharp reversal from the previous year when they reported almost 2 trillion yen worth of unrealized gains.
The Company had accounted for net unrealized holding losses associated with the Cytogen common stock as temporary declines which were recorded in comprehensive income.