What is Fine?

Money paid by a party that has breached contract terms to the other party. NAS No. 21 reflects this as follows: under paragraph 398, fines, penalty interest, surcharges and other types of penalties collected from debtors for breaching the terms of business contracts are recorded on the credit of account 9330 "Fines, penalties and surcharges collected" in correspondence with cash or receivable accounts; under paragraph 303, the company's debt for fines, penalty interest and liquidated damages it has acknowledged (or that have been recognized) is kept in account 6960 "Payments on claims"; under paragraph 410, fines and penalty interest are included in 9430 "Other operating expenses".