Unusual/Infrequent Items

Hey guys just to make sure … Unusual/Infrequent items are part of Continuing Operations (gross) but NOT part of operating activities? Is that correct?

that’s correct Revenue - Operating expenses - Interest expense +/- other revenues and expenses +/- unusual OR infrequent items = Pretax Earning from Continuing Operations - Income Tax Expense = Income from Continuing Operations (the “Line”) +/- Income (loss) from Discontinued Operations (net of tax) +/- Extraordinary items (net of tax) (unusual AND infrequent) = Net income

have you taken the CFA Mock exam #1 JP?

Amazing summary! Good job!

JP great summary!!! I have been wanting to make that for a while

i agree with that JP … but this is an answer to a question which doesnt make sense to me … The loss on the disposal of fixed assets is an unusual or infrequent item but it is still part of normal operating activities. The interest expense is the result of financing activities and would be classified as a nonoperating expense by nonfinancial service companies

interest will only be part of normal operations if it is a FS company (Its part of everyday operations) vs. say a trucking company that doesn’t see it all the time Disposal of fixed assets - Is this under IFRS cause I think this would fall under extraordinary(loss from expropriation of asset) and not on IS? Not sure on this one

Disposal of fixed assets is unusual or infrequent items and are disclosed separately. Even restructuring charges are considered part of a company’s ordinaryactivities.

i dont understand though Ali so if they asked … “which of the following is part of operating activities” doesnt that mean “income from Operations?” which is only sales - cogs - sg&a?