Definition of Unusual item:
A company expenditure that is unusual in nature or that occurs infrequently such that it is not reported along with other ordinary expenses. Separate reporting on the income statement of irregular expenditures arising from discontinued operations or extraordinary items allows for easier clarification of the aberration.
Reporting unusual items separately is important to ensure the transparency of financial reporting. Because unusual items are unlikely to recur, separating these items — either explicitly on an income statement or in the management discussion and analysis (MD&A) or footnotes — allows investors to better assess the income-generating capacity of the core business activities.
An unusual item is a nonrecurring or one-time gain or loss that is not considered part of normal business operations. Unusual gains or losses may be recorded on the income statement as a separate component of income from continuing operations, or alternatively, may be identified in the footnotes to the financial statements or the management discussion and analysis (MD&A) section of the annual report.
Meaning of Unusual item & Unusual item Definition