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.

BREAKING DOWN '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.

  1. One-Time Item

    A one-time item is a gain, loss or expense on the income statement ...
  2. Monetary Item

    A monetary item is an asset or liability carrying a value in ...
  3. Noncash Item

    A noncash item is an item deposited to an account but not credited ...
  4. Exceptional Item

    An exceptional item is a charge that must be noted on a company's ...
  5. Scheduled Personal Property

    Additional coverage that's over and above the typical coverage ...
  6. Core Earnings

    Core earnings are derived from a company's main or principal ...
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