derecognition
dee-rek-og-NISH-un
Definition
The accounting process of removing an asset or liability from the financial statements because it has been sold, settled, or has otherwise lost its value or control.
Etymology
Derived from the prefix 'de-' (indicating removal or reversal) and 'recognition' (from the Latin 'recognitio', meaning 'to know again' or acknowledge). In accounting, it refers to the formal removal of a previously acknowledged item from financial records.
In the news
The article uses the term in the context of calculating financial losses where specific assets or rights are written off or removed from the company's books. It is important here for understanding how the company reconciles its financial position after transactions.
Quantum eMotion (NYSE American: QNC) widens H1 loss but adds $10M crypto IP asset
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