Some events that generate gains or losses that are not expected to recur are:
Losses from natural disaster
Losses from major corporate restructuring
Income for legal settlement
Asset write-downs
Losses from discontinued operations
Gains or losses from an accounting change
Other
Whether nonrecurring items will be reported before or after net income carries important analytical implications.
Placement on the income statement depends on the nature and classification of the nonrecurring items.
Under GAAP, classification of nonrecurring items is broken down into four categories:
| reported pretax |
| reported after-tax |
| reported after-tax |
| reported after-tax |