non-recurring charge

Definition

An expense that supposedly happens only once but mysteriously appears in financial statements every single quarter. It's management's favorite way to exclude bad news from 'adjusted' earnings while claiming it's temporary.

Example Usage

The company reported its fifth consecutive quarter of non-recurring restructuring charges, testing the definition of 'non-recurring.'

Origin

Financial reporting terminology for unusual or infrequent items

Fun Fact

One study found that 'non-recurring charges' at S&P 500 companies recurred in subsequent years over 60% of the time, suggesting management's understanding of 'non-recurring' differs from the dictionary.

Source: Financial reporting and earnings management terminology

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