what is mean by exceptional items in accounting and extraordinary items in accounting . how to disclose this two are in the financial statement.
Please explain...Give some examples
While preparing profit and loss account statement as per schedule III of the Companies Act 2013, wherein we have disclose exceptional and extraordinary items in same P&L account.
1) extraordinary items : -are unusual and non re occuring items for example, any loss to company due to flood, natural desaster , loss due to labour strike etc , those items are not part of operation.
2) Exceptional items:- are Sale of machine which is not in use , Sale of long term investment , litigation settlement etc are part of operation but non reoccurring.
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