Excluding Items
Definition of 'Excluding Items'The common practice of leaving certain factors out of an overall calculation to remove the volatility that might otherwise impact is comparability or distort long-term forecasting. Excluding items can often refer to items left out of the calculation of some earnings per share numbers. Such items may include one-time items, extraordinary expenses or income. |
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Investopedia explains 'Excluding Items'Excluding items is also common in the calculation of indices. For example, the Consumer Price Index (CPI) is commonly reported excluding two highly-volatile items - food and energy prices - to obtain the so called "core inflation" index. |
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