Extraordinary Items Financial Glossary

What is it? Accounting income, gains, expenses, or losses resulting from transactions or events that are both unusual in their nature and infrequent in their occurrence. The GAAP requirements for defining something as extraordinary are strict. The exact language, found in APB Opinion No. 30, paragraph 20, states in order for extraordinary items to be considered unusual... the underlying event or transaction should possess a high degree of abnormality and be of a type clearly unrelated to, or only incidentally related to, the ordinary and typical activities of the entity, taking into account the environment in which the entity operates ..... Thus the same transactions or events can be extraordinary for one firm but ordinary for another firm. When extraordinary items are reported, they are shown on the income statement net of applicable income taxes.

Finance Term Definition Added By: Brooke

Send To Friends!

If you'd like to send the Extraordinary Items definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -

We hope you now understand the meaning of Extraordinary Items. If you need any more information on this term, please don't hesitate to contact us.

Other Similar Finance Terms:

Financial Term Pensionable Age is The age at which you become entitled to the government Basic State Pension.

Financial Term Fraud is Dishonest and illegal practice.

Financial Term Default Risk Premium (DRP) is The additional return lenders require to compensate them for default risk.

Financial Term Email Address is An electronic mail address. E-mail addresses follow a standard formula such as name@isp.com

Financial Term STB is Short term buy