extraordinary gain

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Extraordinary Gain

Non-recurring, non-operating profit in a given fiscal year. Publicly-traded companies must include extraordinary gains (and extraordinary losses) on their annual and quarterly reports; they are usually explained separately so as not to detract from the companies' usual gains and losses. One of the most common extraordinary gains a company may report is the sale of a subsidiary or stake in another company for an amount greater than the asset value carried on the company's balance sheet.

extraordinary gain

Income from an unusual, infrequently occurring event or transaction. For example, a firm might sell a subsidiary at a price significantly higher than the value at which that subsidiary's assets are carried on the firm's balance sheet. An extraordinary gain is reported separately from regular income to emphasize the fact that it is nonrecurring.
References in periodicals archive ?
1 billion last year, about 11 percent lower yearonyear due to its higher extraordinary gains in the previous year.
30 because its extraordinary gains dived by more than 12 billion yen from a year earlier.
According to the Wyatt Company, the organization doing the survey, two implementation strategies are already emerging: combining extraordinary gains with early recognition to smooth the impact on earnings, and redefining the benefit promise before adopting the new accounting standard.
5) To allow relief for economic loss, loss disallowance does not apply to stock of a subsidiary to the extent the loss exceeds a share's allocable part of the sum of (1) the aggregate earnings and profits resulting in positive investment adjustments and distributions from current earnings and profits (determined without regard to extraordinary gain dispositions described below) for all consolidated return years, (2) earnings and profits from certain extraordinary gains after November 18, 1990, net of directly related expenses, for all consolidated return years, and (3) the amount of duplicated loss (Prop.
Hence, extraordinary gains should be automatically taken into account as part of aggregate positive investment adjustments, with aggregate adjustments being net of all losses (including extraordinary losses).

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