![no extraordinary items accounting no extraordinary items accounting](https://cdn.wallstreetmojo.com/wp-content/uploads/2016/09/Discontinued-Operations-Example-1.png)
The interest expense may be actually paid or imputed on financing transactions. Interest Expense - Non-Operating Interest Expense, Non-Operating represents interest expense on debt of nonfinancial service companies, including insurance companies. Operating Income Operating Income represents the sum of:Total RevenueTotal Operating Expense. Total Operating Expense Total Operating Expense represents the sum of: Industrial Company:Cost of Revenue, TotalSelling/General/Administrative Expenses, TotalDepreciation/AmortizationInterest Expense (Income), Net – OperatingUnusual Expense (Income)Other Operating Expenses, TotalUtility Company:Cost of Revenue, TotalSelling/General/Administrative Expenses, TotalDepreciation/AmortizationInterest Expense (Income), Net – OperatingUnusual Expense (Income)Other Operating Expensesįuel ExpenseOperations & MaintenanceInsurance Company:Selling/General/Administrative Expenses, TotalDepreciation/AmortizationInterest Expense (Income), Net – OperatingUnusual Expense (Income)Other Operating Expenses, Total. Unusual Expense (Income) Unusual Expense (Income) represents the sum of: Purchased R&D Written-OffRestructuring ChargeLitigationImpairment – Assets Held for UseImpairment – Assets Held for SaleOther Unusual Expense (Income). The disposal of assets not only includes the sale, but also exchange or abandonment. Loss (Gain) on Sale of Assets - Operating Loss (Gain) on Sale of Assets – Operating reflects the excess of sale proceeds over the net book value (purchase price less accumulated depreciation) of a fixed asset. These assets are retained by the reporting company. Impairment-Assets Held for Use Impairment – Assets Held for Use is a form of an unusual item related to the impairment of long-lived assets, certain identifiable intangibles, and goodwill related to those assets. These assets usually have a high degree of uncertainty concerning future benefits.ĭepreciation/Amortization Depreciation/Amortization represents the sum of:DepreciationAmortization of IntangiblesAmortization of Acquisition Costs. Selling/General/Administrative Expenses, Total Selling/General/Administrative Expenses, Total represents the sum of:Selling/General/Administrative ExpenseLabor & Related ExpenseAdvertising Expense.Īmortization of Intangibles, Operating Amortization of Intangibles represents the accounting process of allocating the cost of assets that lack physical existence over those periods expected to benefit from the use of these assets.
![no extraordinary items accounting no extraordinary items accounting](https://image.slidesharecdn.com/extraordinaryitems-170125131450/95/extraordinary-items-accounting-9-638.jpg)
Individual expenses included in Selling/General/Administrative Expense may vary depending on the nature of business of a company, but they cover expenses related to selling and marketing activities, general activities that serve many different departments, and administrative activities. Selling/General/Administrative Expense Selling/General/Administrative Expense represents all of the costs of operating a business other than the costs of readying a product for sale. Gross Profit states the profits earned directly from a company’s revenues and direct costs. Gross Profit Gross Profit represents a measure of a company’s operating performance. Total Revenue Total Revenue represents revenue from all of a company’s operating activities after deducting any sales adjustments and their equivalents.Ĭost of Revenue Cost of Revenue includes all costs that can be directly attributable to the goods and services produced/purchased and sold.Ĭost of Revenue, Total Cost of Revenue, Total represents total operating expenses directly related to the goods sold and services provided. It consists of revenue from the sale of merchandise, manufactured goods and services, and the distribution of regulated energy resources, depending on a specific company’s industry. Revenue Revenue is used for industrial and utility companies. Revenues are recognized according to applicable accounting principles. Net Sales Net Sales represents sales receipts for products and services, less cash discounts, trade discounts, excise tax, and sales returns and allowances.