I would need some clarifications on Extraordinary Items. I understand that these are items that are not recurring in nature. To calculate the total value of “Other Income” (using Alphabet as an example) for FY2021 (page 74), can I just use $12,020 – $1,499 (interest income) = $ 10,521 to get a rough estimation of the value. I do consider interest income as something that is recurring in nature but do correct me if I’m wrong.
Do I really need to add up the individual components that are considered Extraordinary Items to get an accurate value for it? I do sometimes face the issue of what items are considered Extraordinary Items in some of the report for other companies as they can be unclear/unfamiliar to me.
Thanks a lot.
So sorry for the late reply cause I did not get the email notification for your question.
Yes, you can exclude the interest income as it can be recurring.
It really depends on the amount. If the figures are a small amount less than 5% of total profit, I think you can just ignore the extraordinary items.
Hope this helps :)
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