For the purpose of analysis, an important issue is to assess whether non-recurring items are really "non-recurring," regardless of their accounting labels.
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Subject 6. Non-Recurring Items and Non-Operating Items ows. However, this does not mean that every non-recurring item in the income statement should be ignored. Management tends to label many items in the income statement as "non-recurring," especially those that reduce reported income. <span>For the purpose of analysis, an important issue is to assess whether non-recurring items are really "non-recurring," regardless of their accounting labels.
There are four types of non-recurring items in an income statement.
1. Discontinued operations
Discontinued operations are not a component of pers
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