Below the line item

Which of the following will not affect net income or income available to shareholder? choices: extraordinarily item, discontinued operation, other comprehensive income I thought both extraordinarily item and discontinued operation are “below the line”, so the answer is both? Thanks.

This is not about which one is above/below the line, but which one is not on the income statement at all (hence not affecting NI at all). That’s other comprehensive income, which includes changes in PUFE, P ensions: additional minimum pension liability U nrealized: gains or losses on available-for-sale securities F oreign: currency exchange translations, gain or losses on foreign currency hedges E ffective: portion of cash flow hedges, unrealized gain or losses Changes in any of these go directly on the balance sheet, overpassing the income statement.

Got it! Thank u very much.

I see you are a peter olinto fan Map1. not one his better pnemonics in my opinion - i always forget what the E stands for.

Sure am, Olinto si a great motivational speaker. I like SNOB better:)

map 1 is definitely a recent graduate of the Becker products : ()

Go peter olinto! (I am also using the Stalla videos :slight_smile: