The much awaited reporting season is here again and a careful review of any vested company should be done for an understanding of the direction of which the company is heading towards. Such a review can be timely to provide sufficient reasons in divesting or investing in a company, especially so when the reason for investing in it has changed for better or for worse. However, we may face with extraordinary items which can have a massive impact on the company’s bottom line which will seriously complicate the matter.

Extraordinary items are usually stated in the financial statement in a separate line from the revenue. They are meant to be a one-off and infrequent event that should not occur often in the normal course of business. In fact, I will seriously consider part of the revenue as extraordinary profit so long as they are not generated from the core business …