exceptional items

Costs or income affecting a company's profit and loss account that fall within the ordinary activities of the reporting entity, but need to be disclosed because of their exceptional size or incidence if the financial statements are to give a true and fair view. Unlike extraordinary items they are included in the calculation of the normal trading profit or loss. The rules are set out in Financial Reporting Standard 3, Reporting Financial Performance.

Accounting dictionary. 2014.

Look at other dictionaries:

  • exceptional items — Part of a company s profit and loss account. Items which are material, derived from events or transactions within a company s ordinary activities and which need to be disclosed separately to ensure that the company s accounts give a true and fair …   Financial and business terms

  • exceptional items — Costs or income affecting a company s profit and loss account that arise from the normal activities of the company but are of exceptional magnitude, either large or small. Unlike extraordinary items they are included in the calculation of the… …   Big dictionary of business and management

  • exceptional items — /ɪkˌsepʃən(ə)l aɪtəmz/ plural noun 1. items which arise from normal trading but which are unusual because of their size or nature; such items are shown separately in a note to the company’s accounts but not on the face of the P & L account unless …   Dictionary of banking and finance

  • Earnings Before Interest, Tax, Amortization And Exceptional Items - EBITAE — An accounting metric often used to deduct the amortization of intangible assets to arrive at a value. Companies will use EBITAE not only as a measure of performance, but also to determine interest coverage capabilities. The eliminated items are… …   Investment dictionary

  • Exceptional Item — Charges incurred that must be noted on a company s balance sheet, in accordance with GAAP principles. Even though they are considered to be part of ordinary business charges, exceptional items must be disclosed due to their sheer size or… …   Investment dictionary

  • exceptional item — A transaction separately reported or disclosed in an *income statement on account of its *materiality unusual nature, or infrequency Exceptional items arise from normal operating activities, and examples may include the write off of a significant …   Auditor's dictionary

  • exceptional item — Items in the profit and loss account, derived from within the ordinary activities of the company that are not expected to occur regularly. They are typically profits or losses recorded by selling businesses, or charges incurred in closing… …   Law dictionary

  • pre-exceptional — UK US adjective [before noun] ► ACCOUNTING used in financial reports to describe results that are based on a company s normal activities, without considering exceptional items (= items that relate to unusual events that do not happen regularly)… …   Financial and business terms

  • extraordinary items — Accounting income, gains, expenses, or losses resulting from transactions or events that are both unusual in their nature and infrequent in their occurrence. The GAAP requirements for defining something as extraordinary are strict. The exact… …   Financial and business terms

  • extraordinary items — Costs or income affecting a company s profit and loss account that do not derive from the ordinary activities of the company, are not expected to recur, and, if undisclosed, would distort the normal trend of profits. Such items are therefore… …   Accounting dictionary

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