Income Statement Special Items

These additional special items may be one of three types.

Income statement special items. Discontinued operations extraordinary items and changes in accounting principles. A variety of events can occasion charges against income. Following income the special items from continuing operations appear at their actual impact on the company that is net of their tax effect. A large expense or source of income that a company does not expect to recur in future years.

3 3 1 income statement items. They are commonly identified as restructuring charges unusual or nonrecurring items and. Therefore the items as presented on the income statement can be removed for primary analysis without further adjustment for income taxes. The income statement items that relate to a discontinued operation are always presented net of applicable income taxes.

Certificates of achievement. Income from continuing operations of 5 550 000 is more representative of the continuing earning power of the company than is the net income figure of 4 077 600. Extraordinary items extraordinary items may be defined as material events and transactions distinguished by their unusual nature and by the infrequency of their occurrence. These events were also required to be disclosed in the company s financial statement footnotes listing the nature of the events the extent of the gain or loss and the income tax ramifications.

Special items or extraordinary expenses. We now offer 10 certificates of achievement for introductory accounting and bookkeeping. Special items are reported on the income statement and are separated out from other. The certificates include debits and credits adjusting entries financial statements balance sheet income statement cash flow statement working capital and liquidity financial ratios bank reconciliation and payroll accounting.

Extraordinary income or expenses in a particular period should be separately stated in the statement of profit and loss in a manner that its impact on current profit or loss can be perceived.