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Doubt regarding AS5
Accountancy
What is the precise difference between Exceptional and Extraordinary items? I am finding it difficult to practically assess the difference between the two. For instance, Profit on sale of subsidiaries should be Extraordinary or Exceptional?
Answers (13)
Miradevi S
extraordinary items means not occuring frequently
Exceptional items also do not recur frequently by that logic; sale of subsidiary is not a frequent activity of the business
Thread Starter
Siddharth KulkarniExceptional items also do not recur frequently by that logic; sale of subsidiary is not a frequent activity of the business
extraordinary items are unusual or infrequent items.
Miradevi S
extraordinary items are unusual or infrequent items.
Exceptional items are infrequent but not unusual
Miradevi S
profit on sale of subsidiary is not ordinary activity as it is not day to day act, but it is not extraordinary item as it is not unusual item but occur at some item so it is exceptional item
https://taxguru.in/chartered-accountant/treatment-covid-19-losses-extraordinary-exceptional-ind-as-1-as-5-paradoxa.html Found an Interesting article on the same, I guess you're right, it is the unusualness of the income or expense that differentiates the two.
Thread Starter
Siddharth Kulkarnihttps://taxguru.in/chartered-accountant/treatment-covid-19-losses-extraordinary-exceptional-ind-as-1-as-5-paradoxa.html Found an Interesting article on the same, I guess you're right, it is the unusualness of the income or expense that differentiates the two.
oh then fine u understood right?
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