Skip to content
Dictionary by pitch.dog
Accounting policy, GAAP & adjustments · Core

Expense recognition

Also called: expensing

ELI5

Recording a cost in profit or loss in the appropriate period under applicable rules.

Used in conversation

“Finance needs to reconcile expense recognition before the numbers are released.”

Pitch context

You will see “Expense recognition” in financial models, budgets, board packs and investor materials when the discussion reaches accounting policy, gaap & adjustments.

Why it matters: In accounting policy, gaap & adjustments, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

When the words have to travel

Need an investor or company deck?

Bring the business, the evidence or the half-formed ask. We help it travel beyond the spreadsheet.

See how pitch.dog can help
Sources & evidence · 4

Direct term-level sources and supporting source families.