PLS SOLVE THIS..............

__LOSSES_________ are reduction in firms equity for which no compensating valve has been received.

Reasons:
Loss means loss of asset without creating any other asset. If we loose money in one transaction, that money can't be get back. However, we can make profit in another transaction but ealier loss was still loss and can not be converted in profit or assets in any manner.

THANKS YOU  SIR ..................... FOR UR KIND SUPPORT........................

CAN U EXPLAIN ME, WHY  NOT LIABILITIES ? .........

Let us take each liability one by one:

Loans creates Bank Balance,
Creditors increases your stock
Taxes contributes to firms social liability

What else,   tell me? But the Losses never contribute to firms equity, in any case !!!

OH....... YEA I GOT IT CLEARLY ................

THANKS A LOT AGAIN........................

 thanks -good carification

thanx........

Thanks a lot for providing us information.