loss due to fire: Fire is an accident that won’t happen every year unless. it is very fire prone business. Thus, losses due to such fires are on offs and must be removed.
Huge profits on trading: if the company has made one-time profits from trading activities. it should be also removed. before analyzing financial statements. unless it is a trading company, these profits won’t happen every year.
profit or loss on sale of subsidiaries: similarly, any profit or loss on sale of any subsidiary should also be removed as it is non-recurring.
