EVALUATE THE EFFECTS OF UNUSUAL OR IRREGULAR ITEMS ON FINANCIAL STATEMENTS

Evaluate the effects of unusual or irregular items on

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EVALUATE THE EFFECTS OF UNUSUAL OR IRREGULAR ITEMS ON FINANCIAL STATEMENTS irregular item : An unusual occurrence reported separately from the standard income statement because it is unlikely to recur. Irregular items are shown separately from the income statement proper because they are unlikely to recur. This helps the reader more accurately predict future cash flows There are three types of irregular items: discontinued operations, extraordinary items, and changes in accounting principles. An unusual item is a nonrecurring or one-time gain or loss or expense that is not considered part of normal business operations. Unusual expenses are recorded under operating expenses and then identified by management as unusual in its discussion of financial results or supplemental material for investors.
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REFERNCE - income-statement-21525.html - accounting/chapter/additional-income-statement-considerations/
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