Abnormal loss

Abnormal loss – this legal term finds application within the Corporate Law in some countries. Abnormal loss refers to the financial situation of a local corporate body. There the acquired income cannot cover previously occurred financial loss. So the company is unable to achieve profit. And respectively not able to share such among the shareholders in form of dividend.

The opposite situation would occur with the abnormal profit, which is a lot higher than the usually acquired profit by the company.

Synonym of “abnormal loss” is “aberrant loss”.

See also “actual loss”

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