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Realized loss occurs when an asset which was purchased at a level referred to as cost or book value is then disbursed for a value below its book value. Although the asset may have been held on the balance sheet at a fair value level below cost, the loss only becomes realized once the asset is off the books.
if loss is realized than company is go to some trouble for a some period.
The company will face many problems in the future if it doesnt have a specific plans or innovative management techniques to solve or aviod a high degree of loss.
Losses achieved: the losses resulting from the sale of real and called investigators because the company has already borne the process of selling and realized losses from the operation or suffered a loss because of it ..
One of the main effects is the capital reduced by realized losses or coverage from within the retained earnings
A loss therefore has effects at three levels:
represent in Income statement and decrease in net profit.
if the loss occure in sale of assest then effect on net working capital in balance sheet