Name: Kamil Khan

Roll No # 21010062
For any company’s classification of income is on two bases;
 Reoccurring vs non-reoccurring
 Operating vs non-operating
Occurring of any income is defined by the interval it may happen such as accidental loss of any
assets.
While the operating and non-operating solely depend on the source of the revenue.
While apart from these two criteria, the income is also measured on the three different bases for
the analytical and accounting purposes which are;
 Net income
 Comprehensive income
 Income from continuing operations
In these three, above mentioned criteria are separated, and accountants use three bases to
measure the basis.
Extraordinary items;
 In non-occurring events, the extraordinary items are classified separately in income
statement.
 Extraordinary item can be on basis of;
o Unusual Nature
o Infrequent Occurrence
 Most of the times accountants omit such detail when doing analysis; whether horizontal
or vertical or may be the comparative analysis.
Discontinued operations;
 Its natural for the companies to close any product, division or subsidiary.
 They become part of discontinued operations and are separately mentioned in income
statement.
 For any future decision and analysis, analytics must let go the part of discontinued.
operations from their analysis as those or solely focused on future.