urealiseret

Urealiseret is a Danish term used in accounting and finance to describe gains or losses on investments and financial instruments that have not yet been realised through a sale, settlement, or other completion of the underlying transaction. These amounts reflect current market values but do not represent actual cash flow or completed profit until a realization event occurs.

Etymology and usage: The word is the Danish counterpart of the English unrealized, formed from the prefix un- and the verb realisere (to realize). In financial reporting, unrealised results may appear in asset valuations and are often shown differently depending on the instrument and applicable accounting standards. For example, some assets are carried at fair value with unrealised changes recognized in equity or in the profit and loss statement, depending on whether they are classified as fair value through other comprehensive income or through profit or loss.

Tax and reporting considerations: In many jurisdictions, unrealised gains and losses are not taxed until they are realised by sale or settlement. Tax rules vary, and some regimes may impose special mark-to-market treatments or other rules for particular asset classes or entities.

Example and relevance: If an investor holds shares purchased for 1,000 and the current market value is 1,200, the unrealised gain is 200 while the shares remain unsold. Understanding unrealised amounts helps in assessing portfolio performance and risk, without implying actual cash received or due.

See also: realized gains, fair value, mark-to-market, portfolio valuation.