extraordinary loss

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Extraordinary Loss

A loss that occurs because of an unforeseen and generally unforeseeable event that affects the company. For example, a company may suffer a loss if it sells one of its factories for less than its market value. Extraordinary losses are generally not repeatable. Balance sheets usually record extraordinary losses separately from other losses to account for this. See also: Extraordinary Gain.

extraordinary loss

A loss caused by an unusual, infrequently occurring event or transaction. For example, a firm might sell a money-losing business at a price lower than the value at which the business is carried on its balance sheet.
Case Study Sometimes the ordinary is extraordinary and the extraordinary becomes ordinary. A task force of the Financial Accounting Standards Board (FASB) announced on October 1, 2001, that the September 11, 2001, terrorist attacks on the World Trade Center and Pentagon were not considered "extraordinary" events for accounting purposes. The FASB decision meant companies affected by the airplane hijackings could not treat disaster-related expenses as extraordinary, but rather would have to record costs as part of normal business operations in reporting income according to generally accepted accounting principles. Choosing to view the costs as ordinary rather than extraordinary was an important and controversial decision because investors tend to view extraordinary expenses as one-time events that are less relevant to a company's ongoing financial health. If income from continuing operations and pretax income are substantially different in a reporting period, analysts and investors generally view the former, rather than the latter, as the most important information. In part, the task force made its decision on the basis that the disaster affected nearly all businesses during what had become a poor business environment, so it was difficult to determine whether expenses were directly related to the disaster or to the deteriorating economy. The accounting group was concerned that many companies would attempt to take advantage of the disaster and classify all sorts of charges as extraordinary even though the firms had been planning to take many of these same charges prior to the disaster. The FASB decision prevented firms from doing this.
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Extraordinary losses, mainly on sales of assets, will be recorded in fiscal 2016, which ended in March 2017.
posted a first-quarter net profit of P4.88 billion, only slightly higher than the P4.86 billion racked up in the same period last year, due to extraordinary losses from Supertyphoon "Yolanda."
To prevent utilities from suffering heavy extraordinary losses in a single year, the Agency for Natural Resources and Energy proposed allowing utilities to continue to set aside decommissioning reserves for a certain period even after reactors end operation, given that the work to dismantle facilities will not start immediately.
said Tuesday its group net profit climbed 52.4 percent in the April-December period from a year earlier to 13.27 billion yen on reduced extraordinary losses.
said Monday it incurred a group net loss of 1.14 billion yen for the business year through December, as it marked 84.09 billion yen in extraordinary losses on restructuring credit card businesses.
extraordinary losses in fiscal 2010 through March 31 due to damage to
on Thursday reported a group net profit of 11.31 billion yen for the first half of the current business year, up 36.1 percent from the corresponding period the previous year, reflecting increased sales and a sharp drop in extraordinary losses.
If not for China's repression of workers' rights, the extraordinary losses in U.S.
TOKYO -- Seiyu Ltd., an affiliate of Wal-Mart Stores Inc., has increased its projected loss for the fiscal year ended February due to extraordinary losses on a department store investment.
said Friday it will fall into the red in fiscal 2001 with an unconsolidated net loss of 800 million yen, as it will book extraordinary losses including 2 billion yen from the liquidation of a wholly owned subsidiary in Singapore.
The roughly 40 billion yen resulting from the subtraction of extraordinary losses from extraordinary profit will be used to reduce the company's interest-bearing debt.
Major Japanese companies posted 9.55 trillion yen in consolidated extraordinary losses in the fiscal year which ended March 31, about half of their consolidated pretax profits, the Shinko Research Institute said Friday.

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