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Regular and Irregular items on an Income Statement

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What are the differences between regular and irregular items on an income statement? What are the requirements for items to qualify as irregular? What are some examples of these irregular items? What is the affect of irregular items on an investor's analysis of a company?

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The difference between regular and irregular items is the fact that regular items occur during the normal course of business. For example, if you are in the business of selling electronics, you will need to buy or purchase raw materials or goods, you will need to incur expenses for supplies, salaries etc. All this can be expected daily and an analyst can safely assume that these events will happen regularly.

Requirement for items to be classified as irregular include the criteria that the should not happen in ...

Solution Summary

This solution discusses regular and irregular items on the income statement in 340 words.