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.