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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.