A set of allowances (hence, it is also called valuation allowances) that an entity creates for the purpose of offsetting the amount of an asset such as a deferred tax asset (DTA). For a DTA, the amount of the allowance (contra asset) is calculated in terms of a portion of a tax asset for which, it is more likely than not (a probability level of more than 50%), a reporting entity will not realize to a tax benefit. Broadly, contra amounts include ordinary amortization, extraordinary amortization and write-up (impairment changes), direct write-off, direct elimination, periodic reduction, and so on.

Contra amounts are a form of disclosure techniques.