Non-recurring items - Financial definition
Concise definition of the term non-recurring items
Non-recurring items are one-time expenses or revenues that are not expected to reoccur in future periods.
Comprehensive definition of the term non-recurring items
In corporate finance, non-recurring items encompass exceptional events, such as restructuring charges, impairment losses, gains or losses from asset sales, legal settlements, or write-offs.
These items are typically excluded from regular operating activities to provide a clearer picture of the company's ongoing performance. Identifying and analyzing non-recurring items is crucial for investors and analysts to assess the company's underlying operational health and future earnings potential.