The accounting allowed for a long time a lender to use as his bad debt provision his previous historical loss rate. (thecharlieton.com)
Oversimplifying, that means excluding unrealized gains in its bond portfolio and excluding the value of its deferred tax asset (because of historical losses, AIG won't be a cash taxpayer for years). (oakmark.com)
Lipper Ratings for Preservation reflect funds» historical loss avoidance relative to other funds within the same asset class. (buffalofunds.com)