irregular item

(noun)

An unusual occurrence reported separately from the standard income statement because it is unlikely to recur.

Related Terms

Examples of irregular item in the following topics:

  • Reporting Irregular Items

    • Irregular items are reported separately from the income statement proper so that users can better predict future cash flows.
    • Irregular items, which are by definition unlikely to recur, are reported separately from the income statement proper so that users can better predict future cash flows.
    • Irregular items are reported net of taxes.
    • Discontinued operations are the most common type of irregular items and must be shown separately.
    • Differentiate among discontinued operations, extraordinary items, and changes in accounting principles

  • Special Reporting

    • Irregular items require special reporting procedures, and include discontinued operations, extraordinary items, and the reporting of the resultant EPS.
    • Special, or irregular, items appear on single step or multi-step income statements, and require special reporting procedures.
    • Two examples of irregular items are discontinued operations and extraordinary expenses.
    • Discontinued operation is the most common type of irregular item.
    • Earnings per Share: If a company reports any irregular items on its income statement, then it must report earnings per share for those items.

  • Preparation of the Income Statement

    • Discontinued operations is the most common type of irregular items.
    • Certain items must be disclosed separately in the notes (or the statement of comprehensive income), if material, including:
    • A company that reports any of the irregular items must also report EPS for these items either in the statement or in the notes.

  • Sample Income Statement

    • Items that might be relevant but cannot be reliably measured are not reported (brand recognition and loyalty).
    • These are reported separately so that stakeholders can better predict future cash flows: irregular items probably won't recur.
    • Discontinued operation is the most common type of irregular item.

  • Pro Forma Income Statement

    • A pro forma Income statement could be planned and prepared in advance, which includes the items below:
    • Irregular items - these are reported separately because this way users can better predict future cash flows - irregular items most likely will not recur.
    • Discontinued operations is the most common type of irregular items.

  • Income Statements

    • Irregular items - are reported separately because this way users can better predict future cash flows - irregular items most likely will not recur.

  • Extraordinary Gains and Losses

    • Extraordinary items are both unusual (abnormal) and infrequent, for example, unexpected natural disaster, expropriation, prohibitions under new regulations.
    • No items may be presented in the income statement as extraordinary items under IFRS regulations, but are permissible under US GAAP.
    • In addition to evaluating the regular stream of sales and expenses that produce operating profit, investors also have to factor into their profit performance analysis the perturbations of these irregular gains and losses reported by a business.
    • Examples of extraordinary items are casualty losses, losses from expropriation of assets by a foreign government, gain on life insurance, gain or loss on the early extinguishment of debt, gain on troubled debt restructuring, and write-off of an intangible asset.
    • This income statement is a very brief example prepared in accordance with IFRS; no extraordinary items are presented.

  • Irregular Verbs

  • Checking model assumptions using graphs exercises

    • 8.11: Nearly normal residuals: The normal probability plot shows a nearly normal distribution of the residuals, however, there are some minor irregularities at the tails.
    • In addition, the residuals do appear to have constant variability between the two parity and smoking status groups, though these items are relatively minor.

  • Militia and Army

    • As a precaution, these items were often hidden or left behind by minutemen in fields, wooded areas, or private residences.
    • Rather than fight formal battles in the traditional dense lines and columns, militiamen proved a better resource when used as irregulars, primarily as skirmishers and sharpshooters.
    • Their experience suited irregular warfare.
    • The Indian Wars, and especially the recent French and Indian War, had taught both the men and officers the value of irregular warfare, while many English troops fresh from Europe were less familiar with this type of combat.
    • In time, however, loyalists like John Butler and Robert Rogers mustered equally capable irregular forces.