Overview: A guide in understanding the new 'Exceptional Items' standard header.
Please refer to the Glossary for definitions of key terms used in this article.
Background
Exceptional items are non-recurring, unusual transactions that significantly impact a company's financial results, such as restructuring costs, impairment losses, or legal settlements. They are separated from regular business activities to provide a clearer view of the company’s ongoing performance. This helps prevent distortion in financial statements caused by one-off events.
We provide an 'Exceptional Items' header as part of our Master Chart of Accounts which can be presented in a financial statement layout. The 'Exceptional Items' header if used will appear after Interest (and outside of EBITDA) and before Income Tax.
Example
Here is an example of accounts allocated to the provided Exceptional Items header.
This allows us to exclude these accounts from EBITDA, placing them after interest.
Change the name only
If you only wish to change the name of the Exceptional Items account header, go to Admin Centre > Ledger Admin > Standard Chart of Accounts, click the three dots on the far right, and set Name Variants for this header based on Client Entity Types.
The Exceptional Items header can also be repositioned or deleted from Admin Centre > Page Layout.