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 ?
If you're investing a lump sum, however, or if you can't access a fund without paying an initial or deferred charge, ETFs may well give you the best value for money.
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.
First, the Company was required to record an income tax expense charge of $86 million in the quarter to establish a valuation allowance on its US deferred tax assets and other deferred charges.
The banks balance sheet position is now stronger than ever with deferred charges already written-off, sale of big-ticket non-performing assets, and more than adequate capital despite a more stringent regulation.
Section 6 of the ERC Rules on the sale of sub-transmission assets has specifically provided that "for acquiring electric cooperatives (ECs), any uncollected TransCo/NGCP's connection and residual charges resulting from the deferred charges as approved by the ERC shall be capitalized or included in the acquisition cost of the subject assets.
Before New Standards: Reported as deferred charges (assets).
7m as expenses for the deferred charges relating to the existing credit facility and senior unsecured notes.
Deferred charges for SPV notes continue to press the bank's capital base but most of them will be repaid in the next two years.
These extensions, which will bring financial advantages for the semi-public companies holding the motorway concessions (SEMCA), have been deemed compatible with the Treaty ad with rules on state aid to the extent that they are combined with other reforms, notably withdrawal of State undertakings to take over liabilities, the abolition of the deferred charges scheme and the alignment of SEMCA accounting practices with common law.