Losses

Losses occur when assets are sold for less than their cost.  This can occur when the market price of an asset is declining at a rate faster than the rate of depreciation being charged against it. Losses are considered non-operating events, so they are not included in the operating activities section of the income statement. Instead, they are segregated in a separate line item.

The term can also refer to a continuing series of losses that have occurred over a period of time.