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 ?
In its 2003 Improvements Project, the IASB prohibited the reporting of extraordinary items on the income statement.
After taxes and extraordinary items, Oriental Land's group profit fell 7.0 percent to 17.22 billion yen.
Rakentajain Konevuokraamo expected a turnover of EUR68-72m and profit before extraordinary items of EUR10.5-11.5m for 2004.
It reported fourth quarter pretax profits before extraordinary items of pounds 15.5 million compared with pounds 10.2 million a year ago.
Finnish IT security company F-Secure Oyj reported today (29 October) an operating loss before extraordinary items of EUR100,000 for the period January-September 2002.
Key areas where difference might occur are discontinued operations, restructuring charges, extraordinary items, research and development, accounting changes (in principal, estimate or errors) and employee benefits.
The German energy group RWE has announced a net profit bolstered by extraordinary items of Euro 570 million for the first nine months of its 1998/99 trading year (to June 30), a 16% improvement on the corresponding period last year.
saw fiscal 1998 income improve by over 20% before special charges and extraordinary items.
Excluding one-time charges and extraordinary items, the company said, net income rose 16.8% to $78.2 million.
Net income, before extraordinary items in the first half, increased 85 percent to $3.7 million, or 41 cents per share, from $2 million, or 22 cents per share in the 1995 period.
Excluding extraordinary items, BDO's net income would have expanded by 17 percent year-on-year, the bank disclosed to the Philippine Stock Exchange on Monday.
The company projected in August to post in the current year earnings before interest, tax, depreciation and amortisation (EBITDA), excluding extraordinary items, of between EUR 725 million and EUR 800 million.

Full browser ?