What Is a Non-Accountable Plan? The TaxCuts and Jobs Act (TCJA) of 2017 eliminated itemized deductions for employees who incur unreimbursed expenses for company business for 2018 through 2025. Formerly employees could deduct out-of-pocket expenses for things like uniform cleaning and fees for professional organizations. Companies can compensate for their employees’ loss of this deduction
What Is a Non-Accredited Investor? A non-accredited investor is any investor who does not meet the income or net worth requirements set out by the Securities and Exchange Commission (SEC). The concept of a non-accredited investor comes from the various SEC acts and regulations that refer to accredited investors. An accredited investor can be a bank or
What Is a Nonaccrual Loan? Nonaccrual loan is an accounting term in the lending industry for an unsecured loan that is no longer generating its stated interest rate because no payment has been made by the borrower for 90 days or more. For a lender in business to earn interest, it has become a nonperforming
What Is a Non-Admitted Balance? A non-admitted balance is an item on an insurer’s balance sheet that represents reinsured liabilities for which the reinsurer has not provided collateral. Nonadmitted balance entries reduce the policyholders’ surplus because they represent a liability. Key Takeaways A non-admitted balance is an item on an insurer’s balance sheet that represents reinsured
What Is a Non-Amortizing Loan? A non-amortizing loan is a type of loan for which payments on the principal are made by lump sum. As a result, the value of the principal does not decrease at all over the life of the loan. Popular types of non-amortizing loans include interest-only loans or balloon-payment loans. Key
What Are Non-Borrowed Reserves? Non-borrowed reserves are bank reserves—that is, the funds a financial institution holds in cash—that are its own, and not money on loan from a central bank. Key Takeaways Non-borrowed reserves are funds a financial institution holds in cash; the funds are its own, and not money on loan from a central
What Is Noncallable? Noncallable security is a financial security that cannot be redeemed early by the issuer except with the payment of a penalty. The issuer of a noncallable bond subjects itself to interest rate risk because, at issuance, it locks in the interest rate it will pay until the security matures. If interest rates
What is a Non-Cash Charge? A non-cash charge is a write-down or accounting expense that does not involve a cash payment. They can represent meaningful changes to a company’s financial standing, weighing on earnings without affecting short-term capital in any way. Depreciation, amortization, depletion, stock-based compensation, and asset impairments are common non-cash charges that reduce earnings but not cash flows. Key
What Is a Non-Cash Item? A non-cash item has two different meanings. In banking, the term is used to describe a negotiable instrument, such as a check or bank draft, that is deposited but cannot be credited until it clears the issuer’s account. Alternatively, in accounting, a non-cash item refers to an expense listed on an
What Is the National Futures Association (NFA)? The National Futures Association (NFA) is an independent self-regulatory organization for the U.S. futures and derivatives markets. Designated by the Commodity Futures Trading Commission (CFTC) as a registered futures association, the NFA’s mandate is to safeguard the integrity of the derivatives markets, protect investors, and ensure that members
