Carryover Meaning: Definition, Examples, and Translations
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carryover
[ˈkɛr.i.oʊ.vɚ ]
Definitions
financial context
A carryover refers to an amount that is transferred from one accounting period to another. It typically pertains to expenses, revenue, or tax attributes that are not fully utilized in a given year but can be applied in future periods. This concept is widely used in budgeting, taxation, and financial reporting.
Synonyms
rollover, surplus, transference.
Examples of usage
- The company's carryover from last year's budget helped in planning this year's expenses.
- He received a tax benefit from the carryover losses.
- The carryover of unused vacation days can affect employee benefits.
general use
To carry over means to transfer something from one situation or context to another. This could involve extending an obligation, moving a particular feature or term into a different scope, or incorporating a prior component into a new arrangement.
Synonyms
Examples of usage
- She decided to carry over her savings to the next fiscal year.
- The terms of the contract will carry over to the new agreement.
- He will carry over the lesson learned from his previous job into his current position.
Translations
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Origin of 'carryover'
The term 'carryover' originates from the combined use of the word 'carry', which comes from the Old English 'ceorian', meaning to 'bear' or 'transport', and the word 'over', which denotes a sense of transferring something to another location or context. The concept of carryover has seen a significant evolution in financial and accounting terms, especially in the 20th century as businesses focused more on long-term financial strategies and tax planning. The practical application of 'carryover' became essential in corporate finance, allowing businesses to optimize their fiscal policies and manage their income effectively over multiple periods.