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What is the difference between discontinued operations & extraordinary & exceptional and unusual items as an impact on the income statement and how to be reported ?
thanksThere is no such thing as an ‘extraordinary’ item
An ‘exceptional’ item and an ‘unusual’ item must surely be the same …’an item is exceptional because of its unusual size or nature’
Separate disclosure is appropriate for exceptional items in the same way that separate disclosure is appropriate for discontinued operations but discontinued operations tends to have far further-reaching implications because it (probably) affects revenue, costs, administrative expenses, distribution costs, taxation … whereas an exceptional item is most probably just a single amount affecting a single line item
So, both of the discontinued and unusual, reported in the same way at the income statement , each of them in one separated line item, is that right?
But the discontinued disclosure involves changing last year’s reported figures whereas the unusual does not involve retrospective adjustments
Furthermore, if you’re not going to show the line-by-line affect of the discontinuance on the face of this year’s profit or loss, the detail must be shown by way of note
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