Nigel.Machado wrote:dear members there is no such thing called extra ordinary items according to companies act no 7 of 2007.
welcome to forum friend
*Occasionally, a company will encounter an item that is so extraordinary that it merits special display on the income statement. Under IAS 8
, extraordinary items are:
-Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the enterprise and therefore are not expected to recur frequently or regularly
*Extraordinary items are events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence. Thus, both of the following criteria should be met
to classify an event or transaction as an extraordinary item
-a.Unusual nature—the underlying event or transaction should possess a high degree of abnormality and be of a type clearly unrelated to, or only incidentally related to, the ordinary and typical activities of the entity, taking into account the environment in which the entity operates.
-b.Infrequency of occurrence—the underlying event or transaction should be of a type that would not reasonably be expected to recur in the foreseeable future, taking into account the environment in which the entity operates.
*No items may be presented in the income statement as extraordinary items. (IAS 1.87) Extraordinary items are both unusual (abnormal) and infrequent, for example, unexpected natural disaster, expropriation, prohibitions under new regulations,temporary tax benefits, and irregular lawsuits.
other income is not a extra ordinary
item..it derives in ordinary course of action.as new act no classification of extraordinary items,if so will be write off against income statement.