DISALLOWANCES Meaning and
Definition
-
Disallowances, in the context of accounting and finance, refer to the deductions or exclusions made from income, expenses, or claims due to non-compliance with rules, regulations, or contractual agreements. These disallowed items are typically expenses or claims that are not considered legitimate or appropriate to be included in the final calculation or assessment.
Disallowances can occur for various reasons and in different settings. For instance, in tax law, disallowances may be imposed by tax authorities when certain expenses are deemed ineligible for deduction or if they do not meet specific criteria outlined in tax regulations. This can include disallowing personal expenses or excessive claims that are not considered essential for business operations.
Similarly, in auditing, disallowances may be identified when reviewing financial statements or reimbursement requests. Auditors may find irregularities, such as unrecorded or unsupported expenses, duplicate claims, or non-compliant spending, and recommend their disallowance.
In some cases, disallowances are also encountered in legal proceedings or contractual agreements, where certain claims made by individuals or entities are rejected or invalidated due to lack of evidence, breach of contract, or non-compliance with specific terms and conditions.
Overall, disallowances represent the negation or rejection of certain expenses or claims, either due to their non-compliance with established rules or their failure to meet the required criteria for inclusion.
Common Misspellings for DISALLOWANCES
- sisallowances
- xisallowances
- cisallowances
- fisallowances
- risallowances
- eisallowances
- dusallowances
- djsallowances
- dksallowances
- dosallowances
- d9sallowances
- d8sallowances
- diaallowances
- dizallowances
- dixallowances
- didallowances
- dieallowances
- diwallowances
- diszllowances
- dissllowances
Etymology of DISALLOWANCES
The word "disallowances" is derived from the combination of the prefix "dis-" and the word "allowances".
- The prefix "dis-" is a negative prefix used to indicate negation, reversal, or absence.
- The word "allowances" is the plural form of "allowance", which means a certain amount of something that is permitted or granted.
When these two elements are combined, "disallowances" refers to the act of negating or reversing allowances, denying permission, or refusing to grant something that was previously permitted or allocated.
Infographic
Add the infographic to your website:
