Legal Definitions - extraordinary item

Definition: An unusual or infrequent expense, such as a write-off of goodwill or a large judgment.

Example: A company may have an extraordinary item if they experience a natural disaster that causes significant damage to their property and requires unexpected expenses to repair. This expense is not a regular part of their business operations and is considered extraordinary.

Explanation: An extraordinary item is a one-time expense that is not expected to occur regularly in a company's operations. It is usually a significant expense that is not related to the company's day-to-day activities. In the example given, the natural disaster is an unforeseen event that requires the company to incur expenses that are not part of their regular operations. This expense is considered extraordinary because it is not expected to occur regularly and is not related to the company's normal business activities.