Unusual Expenses

What are Unusual Expenses?

Unusual Expenses represent the total of unusual expenses (net) and of other unusual income. An item appearing in the income statement is considered as exceptional, extraordinary, or unusual, before tax, if it meets all of the following criteria:

  • Material - refers to the possibility of an item to affect or influence the decision of stakeholders and as such, must be disclosed in the financial statement;
  • Infrequent/Non-recurring - refers to the irregular occurrence of the account during the course of a company's operating cycle; and
  • Unusual - refers to the lack of predictability of such an account, provided the nature of business, such as natural disasters and sudden changes in accounting.
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