extraordinary items

Extraordinary Item

A large gain or loss in a company's earnings due to a non-recurring event that is out of the company's control. For example, a water distribution company may have unusually high earnings from sales because a natural disaster required relief organizations to purchase large quantities of clean water. On the other hand, it may have low earnings from sales because all the relief organizations had previously stocked up on water and did not need to buy any more. Extraordinary items are reported separately from the company's other financial statements so as to give a clearer picture of how the company is actually performing. Publicly-traded companies must report extraordinary items to shareholders in quarterly and annual reports and explain why they do not constitute a substantial increase or decrease in the company's health.

extraordinary items

non-recurring items of expense or revenue which do not arise in the normal course of trading; for example, losses associated with a major reorganization of a company division which involves significant sales of assets. Such losses would be deducted directly from the company's RESERVES below the line rather than being charges against the profits of the trading period, to avoid affecting the results of routine trading operations with one-off non-trading losses.
References in periodicals archive ?
The International Accounting Standards Board (IASB) already prohibits reporting extraordinary items.
Excluding extraordinary items, income rose to $545 million from $422 million a year earlier.
Extraordinary items are reported at the bottom of the income statement, net of their tax effects.
Fully diluted earnings per share after extraordinary items for 2004 were 3 cents, down from 7 cents for 2003.
Odfjell said that it expected the fourth quarter result to be in line with the average result before extraordinary items and taxes for the first three quarters 2003.
9% jump in earnings before extraordinary items during the quarter ended June 14.
Generally, extraordinary items are nonoperating income or deductions, including capital and Sec.
One area where the concept of materiality has direct application is the disclosure of extraordinary items required by APB Opinion No.
NYSE:HIT)(TOKYO:6501) today announced that it plans to post certain extraordinary items on unconsolidated basis for fiscal 2005, ended March 31, 2006.
Under current GAAP, the criteria mandated in Accounting Principles Board (APB) Opinion 30 have so restricted the ability of items to be classified as extraordinary that in 2003 only 2% of the entities included in Accounting Trends and Techniques, 60th Edition (AICPA, 2006) reported extraordinary items.
or international standards, as is currently the case for extraordinary items, in some instances, the eventual solution may be convergence to a third, superior approach.
CINCINNATI -- Unfavorable trends in gross margins and operating expenses, as well as a higher effective tax rate, cut earnings before extraordinary items by almost 20% at Hook-SupeRx Inc.

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