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Extraordinary Items

Questions › Category: Financials Quadrant › Extraordinary Items
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Dylan Lim asked 5 years ago

Hi Victor,
I was looking through Challenger’s AR 2013 at this link http://www.challengerasia.com/ir_annualreport.html (page 78). I was trying to tabulate the extraordinary items and was wondering which items to deduct/add from the Net amount of 384,000? 
Items to add:

  1. Foreign exchange adjustment losses – 204,000
  2. Losses on disposal of plant and equipment – 190,000
  3. (Losses)/Gains on disposal of available-for-sale financial assets – 44,000
  4. Inventories written off – 97,000

Is the above correct? Please point out my errors or anything that i have left out. Thanks!
 

2 Answers
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Victor Chng answered 5 years ago

Hi Dylan,
 
Referring to page 48 of AR2013 these will be the following item that I will add or subtract from the net profit:
 
1.Interest Income – Substract
2.Other Credit – Subtract
3.Changes in Inventories of Finished Goods – Subtract
 

Dylan Lim replied 5 years ago

Hi Victor, thanks for your reply. Noted on point 1 and 2. May i ask how come u deducted 3) Changes in Inventories of Finished Goods too?

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Victor Chng answered 5 years ago

Hi Dylan,
 
For example the inventory for 2016 is $1 million and the inventory in 2017 in $2 million the difference of $1 million will be recorded as positive figure under the changes in inventories of finished goods as positive figure. Hence it is not sales generate from the sales of inventories which means have to be removed.

Dylan Lim replied 5 years ago

Hi Victor,
I see! Ok thank you so much!

Victor Chng replied 5 years ago

You are welcome :)