Editing Income statement (section)

===Irregular items===
They are reported separately because this way users can better predict future cash flows - irregular items most likely will not recur. These are reported '''''net of taxes'''''.
* '''[[Discontinued operation]]s''' is the most common type of irregular items. Shifting business location(s), stopping production temporarily, or changes due to technological improvement do '''not''' qualify as discontinued operations. Discontinued operations ''must'' be shown separately.

'''Cumulative effect of changes in accounting policies (principles)''' is the difference between the book value of the affected assets (or liabilities) under the old policy (principle) and what the book value would have been if the new principle had been applied in the prior periods. For example, valuation of inventories using [[FIFO and LIFO accounting|LIFO]] instead of [[average costing|weighted average method]]. The changes should be applied '''retrospectively''' and shown as adjustments to the ''beginning'' balance of affected components in [[Equity (finance)|Equity]]. All comparative financial statements should be restated. (IAS 8)

However, '''''changes in estimates''''' (e.g., estimated useful life of a fixed asset) only requires '''prospective''' changes. (IAS 8)

'''No''' items may be presented in the income statement as '''extraordinary items''' under IFRS regulations or (as of ASU No. 2015-01<ref>[https://www.iasplus.com/en/publications/us/heads-up/2015/asu2015-1 "Heads Up — FASB issues ASU on extraordinary items"] Accessed 22 August 2023.</ref>) under US GAAP.  ''Extraordinary items'' are both unusual (abnormal) and infrequent, for example, unexpected natural disaster, expropriation, prohibitions under new regulations. [Note: natural disaster might not qualify depending on location (e.g., frost damage would not qualify in Canada but would in the tropics).]

Additional items may be needed to fairly present the entity's results of operations. (IAS 1.85)