incurred losses

  • Losses are incurred when they happen. The total of all such losses (whether paid or not) make up this figure as it appears on the company operating statements. This figure is one used frequently for various periods as well as in the annual statement. It would take much work to keep track of losses both by date of occurrence and payment. The figure is arrived at by subtracting from the period’s paid losses those which were on the books unpaid at the beginning of the period and adding those which are on the books unpaid at the end of the current period.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).