Okuzeka
Finance & Banking vocabulary · Financial Statements

Derecognition

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, derecognition means: Removing a previously recognized asset or liability from an entity's statement of financial position.

In Turkish: finansal tablo dışı bırakma

How it is used

Distinguish derecognition from merely reducing value; transfer and extinguishment criteria depend on standards.

Example sentences

  1. The transfer did not meet the criteria for derecognition of the receivables.

    A legal transfer need not remove an asset from the accounts.

  2. Repayment led to derecognition of the financial liability.

    The obligation is removed after it has been extinguished.

Common collocations

  • derecognition criteria
  • asset derecognition
  • balance sheetA financial statement showing what a company owns (assets), what it owes (liabilities) and the owners' share (equity) on a specific date.
  • liabilityMoney or another obligation that a company owes to others, such as loans, unpaid bills or, for a bank, its customers' deposits.

More terms: Financial Statements

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This page explains English vocabulary for learners. It is not financial advice.