Loss from stock valuation? Stock valuation loss?

English translation: change in market value (decrease)

19:49 Jun 29, 2005

English language (monolingual) [PRO]
Bus/Financial - Accounting

English term or phrase: Loss from stock valuation? Stock valuation loss?

This is a term from a balance sheet, which I am trying to translate into English. I know what the concept is, but am unsure what the best way is to express this in English.

For example, if Company X originally bought 1000 shares of Company Y's stock at $100 each, and right now it is the end of Company X's fiscal year, and the stock is only worth $80 each. So Company X has to write down a [stock valuation loss?] of -$20,000 on the balance sheet to show how much it theoretically would lose by selling the stock now, although Company X hasn't actually sold it. Apparently this is required by law on the balance sheet to really show the true value of a company, to keep companies from making themselves look good when they're not, such as if a company looks like it has a lot of profit, but actually owns a whole lot of really crappy stock, that would result in a huge loss if sold.

What is the term that is normally used for this in English (US English preferred)?

Thank you.

conejo KudoZ activity Questions: 724 (1 open) (24 closed without grading) Answers: 286 United States
Local time: 10:17

Selected answer:change in market value (decrease)

Explanation:
must show investments at the lower of cost or market

it is NOT a loss/gain until the security is sold

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Note added at 35 mins (2005-06-29 20:25:27 GMT)
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change in market value of investments

LOCOM (lower of cost or market)The amount established is the lower of the cost of the asset or the current market value. Under this method, assets must be written down if the market value falls below the cost. They may also be written up but not above their amortized cost.

Selected response from:

marybro
Local time: 11:17

Grading comment

I used "decrease in stock value", because I liked that the best: I also liked "unrealized capital loss", but that was a little too specific for the source text. Thanks, everybody
4 KudoZ points were awarded for this answer

SUMMARY OF ALL EXPLANATIONS PROVIDED

4 +3

change in market value (decrease)

marybro

4 +2

unrealized capital loss [on shares]

Marian Greenfield

4 +1

stock valuation loss

Aleron

Answers

11 mins confidence:

peer agreement (net): +1

loss from stock valuation? stock valuation loss? stock valuation loss

Explanation:
Stock valuation loss is fine.

Aleron
Local time: 11:17
Native speaker of:

English

32 mins confidence:

peer agreement (net): +2

loss from stock valuation? stock valuation loss? unrealized capital loss [on shares]

Explanation:
as opposed to unrealized gain... in other words, a paper loss...

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Marian Greenfield
Local time: 11:17
Specializes in field
Native speaker of: