Difference b/w exceptional & extra-ordinary items

This query is : Resolved 

07 June 2012

What is the difference in exceptional & extra ordinary items in the context of revised schedule VI

CA SMR (Expert)
08 June 2012

In my understanding extraordinary items are unusual or infrequent items.Expenses arising out of unusual natural disaster,prohibition under new regulation,expropriation..

Exceptional items are infrequent but not unusual.

Exceptional items relate to material non-recurring items of income and expense arising from circumstances such as:

- write-downs of inventories to net realizable value or of

property, plant and equipment to recoverable amount, as well

as reversals of such write-downs;

- restructurings of the activities of an entity;

- releases of provisions;

- disposals of property, plant and equipment;

- disposals of associates or other financial assets;

- discontinued operations;

- onerous contracts;

- litigation settlements.

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