07 August 2011
Extraordinary items are those items which are not driven by to normal course of business operations like gain on sale of investment, or loss due to plant shut down. This item has to be shown seperately in income statement and the details of which has to be provided in the notes to consolidated financial stateJust for your records; "extra-ordinary" costs or revenues are not permitted anymore under IFRS.ment. Accounting entry which reflects materially large cost (such as that incurred in plant modernization) or materially large revenue (such as that realized from an unusually huge order) that may recur and which derives from a firm's normal line of business Extra-ordinary income or expense is always reported net after taxes. exceptional are reported prior to taxes.
so if one were to adj the NI with these amts, you would deduct/add extra-ordinary gains/losses (net after taxes) & the same for exceptional items (however, here u would have to est. the tax rate & then add/deduct this amt from ni)
CAclubindia
