Sentence examples for earnings charge from inspiring English sources

Any company with sustained losses on its securities holdings must eventually take an earnings charge.

Ericsson said Thursday that about 5 billion kronor of the earnings charge reflected the new lower valuation of ST-Ericsson, while the remaining 3 billion kronor would be applied in 2013 to cover continued commitments to ST-Ericsson.

And as Barnesandnoble.com and CDNow have shown, even that earnings charge is not enough to dissuade all companies from repricing their options when their stock price is falling and they are facing a tight labor market.

"The earnings charge resulting from the amortization of goodwill has made purchase accounting unattractive in many cases," H. Rodgin Cohen, chairman of the New York law firm Sullivan & Cromwell, wrote in a recent note to clients.

In most cases, such an exchange does not require companies to take an earnings charge, according to the final version of the new accounting rule released last month by the Financial Accounting Standards Board.

More than two years ago, the Financial Accounting Standards Board ruled that companies that reprice stock options -- canceling old ones and replacing them with cheaper ones, following a stock drop -- must take an earnings charge as a result.

According to the accounting board's ruling, any time a company cancels options and reissues new ones within six months, that maneuver will be considered a repricing and will necessitate earnings charges each year for the life of the options.

It takes minutes maybe seconds for most information to be priced into a stock, including earnings, charges and acquisitions.

Nor would we have to rely on extremely inaccurate models, which can produce vastly different earnings charges based on inputs to the model.

This alternative is a form of "variable accounting," but the erratic vacillation in stock prices and earnings charges would not affect the basic net income or EPS number.

2. Giving companies a choice of which model and assumptions to use is likely to result in a huge range of option values and, therefore, earnings charges.