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took a charge

English translation: set aside provisions

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
English term or phrase:took a charge
English translation:set aside provisions
Entered by: Laura Vinti
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08:46 Feb 17, 2005
English to English translations [PRO]
Bus/Financial - Finance (general)
English term or phrase: took a charge
As part of their fourth quarter earnings, XXX also ***took a charge*** relating to the previously announced sale of their YYY division.

Thank you.
Laura Vinti
United States
Local time: 02:53
set aside provisions
Explanation:
"Taking a charge" usually refers to provisioning. This might be related to impairment of assets (e.g. in the case of bad loans, as seen in the two references), or restructuring charges. The charge quoted in your context might be due to impairment of goodwill, but one would obviously need to know more detail to be certain.
Selected response from:

Ralf Lemster
Germany
Local time: 08:53
Grading comment
Thank you!!
4 KudoZ points were awarded for this answer

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Summary of answers provided
4 +2set aside provisions
Ralf Lemster
4incurred a paper loss
David Knowles
4incurred loss, took a hit on their bottomlineCraft.Content
3 +1received a fee
Johan Venter


Discussion entries: 1





  

Answers


4 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
received a fee


Explanation:
It would be easier to confirm 100% with a little more context, but it seems like it refers to a fee

Johan Venter
Czech Republic
Local time: 08:53
Works in field
Native speaker of: Native in EnglishEnglish

Peer comments on this answer (and responses from the answerer)
agree  Amal Al-Arfaj: Also agree that more context would be better!
10 mins
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15 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +2
set aside provisions


Explanation:
"Taking a charge" usually refers to provisioning. This might be related to impairment of assets (e.g. in the case of bad loans, as seen in the two references), or restructuring charges. The charge quoted in your context might be due to impairment of goodwill, but one would obviously need to know more detail to be certain.


    Reference: http://www.smh.com.au/news/Business/Bad-loans-Japanese-bank-...
    Reference: http://www.cbc.ca/stories/2003/05/30/royalbank_030530
Ralf Lemster
Germany
Local time: 08:53
Specializes in field
Native speaker of: German
PRO pts in category: 143
Grading comment
Thank you!!

Peer comments on this answer (and responses from the answerer)
agree  Victor Potapov: agree with a "provision". But if I were to put it in layperson words, "company decreased its profits" or "company recorded a loss on the sale". Oversimplification? Yes. Some accounting aspects left out? Sure. Easier to grasp? Maybe...
20 mins
  -> Same as with any technical language: "taking a charge" is the accepted lingo...

agree  Charlesp: yes
25 mins
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1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5
incurred loss, took a hit on their bottomline


Explanation:
As a result of the sale of the YYY division, revenue accrued from the latter was not available in the fourth quarter. This impacted the bottomline.



Craft.Content
Local time: 12:23
Native speaker of: Native in HindiHindi
PRO pts in category: 5
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2 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
incurred a paper loss


Explanation:
The YYY division had a value in the company's balance sheet, and was shown as part of their assets. They sold this division for less than this value, and therefore they incurred a loss. However, this is a "paper" loss, since they actually received money for the sale.

To give a simple example, if you have a valuable painting which you inherited from your maiden aunt and you think it's worth 10,000 dollars, you might include that 10,000 dollars in your list of assets. When you want some money, and you sell it at auction, you find it's not worth what you thought and you only get 1,000 dollars for it. This is a paper loss of 9000 dollars - you've got 1000 dollars in cash, but you're not as wealthy as you thought you were.

David Knowles
Local time: 07:53
Works in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 20
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