Extraordinary Item

What is an Extraordinary Item?

An Extraordinary Item represents the “after-tax” cash gains or losses that a company incurs due to extraordinary or unusual events, reported as part of a company’s cash flow from operations. This is the part of the Cash from Operating Activities.

It includes:

  • Gain or loss on disposal of discontinued operations;
  • Cash received in respect to insurance claims; and
  • Cash payment/receipt in respect to legal settlements.
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