After some hard thinking I decided that
I didn't really need that category. It existed so that lenders and
investors could look at a company's income statement free of distortion
by items that are not part of normal operations. Well, I'm not a
company, so no one would be investing in me, and lenders have their own
forms for applicants' income and expenses. (And I discovered that even
companies don't use Extraordinary Items any more, since the standards
bodies have eliminated them.)

Well like I said, organizations likely to use something of the sort. And I think you might be too focused on the NAME "extraordinary Income" (or "extraordinary expense") as opposed to function (called whatever). A business WOULD probably be doing SOMETHING to separate out extraordinary events.

AS MIGHT INDIVIDUALS. Yes, you would want a profit and loss including such items BUT you would also likely want one without (and THAT's the one you use comparing periods).

Michael D Novack


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