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extraordinary item

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Financial Dictionary

Extraordinary Item

Gains or losses included in a company's financial statements, which are infrequent and unusual in nature. These are usually explained further in the "notes to the financial statements."

Investopedia Commentary

These are the result of unforeseen and atypical events. They are usually accounted for separately so they don't skew the company's regular earnings.

An example would be a snowstorm in Hawaii creating extraordinary losses to banana crops. These losses might be written down as a one-time charge due to an extraordinary item.

Related Links

Understanding Pro-Forma Earnings
Footnotes: Start Reading The Fine Print
How To Read Footnotes - Part 1

See also: Balance Sheet, Fundamental Analysis, Income Statement, Write Down

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Financial Dictionary

extraordinary item

An infrequently occurring transaction or event that, if material, is reported separately from continuing operations.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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