extraordinary items

Examples of extraordinary items in the following topics:

• Special Reporting

  • Irregular items require special reporting procedures, and include discontinued operations, extraordinary items, and the reporting of the resultant EPS.
  • Two examples of irregular items are discontinued operations and extraordinary expenses.
  • No items may be presented in the income statement as extraordinary items under IFRS regulations, but are permissible under US GAAP.
  • Income tax is allocated to income from continuing operations before tax, discontinued operations and extraordinary items.
  • Summarize how a company reports extraordinary items, discontinued operations, intraperiod tax allocations, retained earnings and earnings per share.

• Extraordinary Gains and Losses

  • Extraordinary items are both unusual (abnormal) and infrequent, for example, unexpected natural disaster, expropriation, prohibitions under new regulations.
  • No items may be presented in the income statement as extraordinary items under IFRS regulations, but are permissible under US GAAP.
  • As a result, extraordinary gains or losses don't skew the company's regular earnings.
  • Examples of extraordinary items are casualty losses, losses from expropriation of assets by a foreign government, gain on life insurance, gain or loss on the early extinguishment of debt, gain on troubled debt restructuring, and write-off of an intangible asset.
  • This income statement is a very brief example prepared in accordance with IFRS; no extraordinary items are presented.

• Reporting Irregular Items

  • Irregular items are reported separately from the income statement proper so that users can better predict future cash flows.
  • Irregular items are reported net of taxes.
  • Discontinued operations are the most common type of irregular items and must be shown separately.
  • Extraordinary items are unexpected, abnormal, and infrequent—for example, sudden natural disaster, expropriation, or new prohibitions due to changes in regulations.
  • Differentiate among discontinued operations, extraordinary items, and changes in accounting principles

• Times Interest Earned Ratio

  • Analysts often use "Operating Income" as a proxy for EBIT when complex accounting situations, such as discontinued operations, changes in accounting principle, extraordinary items, etc., are reported in a company's financial statements.

• Other Expenses

  • Discontinued operations are the most common type of irregular items.
  • Extraordinary items are both unusual (abnormal) and infrequent, for example, unexpected natural disaster, expropriation, prohibitions under new regulations.

• Performance per Share

  • Companies are required to report EPS for each of the major categories of the income statement, including: continuing operations, discontinued operations, extraordinary items, and net income.

• Earnings per Share

  • In the United States, the Financial Accounting Standards Board (FASB) requires that companies' income statements report EPS for each of the major categories of the income statement: continuing operations, discontinued operations, extraordinary items, and net income.

• Differences Between GAAP and IFRS and Implications of Potential Convergence

  • Statement of Income — Under IFRS, extraordinary items are not segregated in the income statement.

• Calculating Diluted Earnings per Share

  • In other words, they make an EPS calculation for income from continuing operations, discontinued operations, extraordinary items, changes in accounting principle, and net income.

• Kuba

  • With half of all Bushoong men holding titles in the 1880s, competition for influence was sometimes fierce, and it found expression in the elaboration of these essentially commonplace household objects into works of extraordinary beauty.
  • Noteworthy items in this collection include a carved ndop figure of a Kuba king , believed to be among the oldest extant ndop carvings, and a Lulua mother-and-child.