Fundamental Glossary / Earnings & Accounting Concepts
One-Time Losses
Costs from events that are not expected to recur, such as a restructuring, a disaster, or an impairment.
Formula
Disclosed as exceptional items or impairments. Adjusted profit often adds them back.
What it means
A genuine one-time loss should not be treated as the permanent earning power. Adding it back once, with a reason, is fair.
The loss can still be a signal. An impairment says the earlier asset value was too high. A restructuring says the earlier cost base was too high.
How to read it
Add back only what you believe will not recur. Then look at the next two years. If a new "one-time" loss appears, stop adding them back.
What to watch
Cash one-time costs, such as severance that is actually paid, reduce the cash available this year even if you exclude them from normalised profit.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.