Fundamental Glossary / Earnings & Accounting Concepts
Extraordinary Items
A term for events that were outside ordinary activities. Modern Indian accounting has largely dropped it as a separate below-the-line category.
Formula
Under current Ind AS presentation, unusual items are generally part of profit and disclosed as exceptional or in the notes, not as a vanished "extraordinary" line below net profit.
What it means
Older annual reports showed extraordinary items below the line so that they did not affect some profit subtotals. Readers can still meet the phrase in commentaries and older data.
The idea that survives is disclosure, not a special place on the statement. Unusual items should be visible. They should not disappear from every ratio.
How to read it
When a data vendor still has an extraordinary line, read what was put there. Gains that were "extraordinary" and costs that were "operating" is a biased split.
What to watch
Do not assume an old extraordinary loss can be ignored in a trend. If the business keeps having them, they are part of the franchise.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.