Non-operating income
Non-operating income refers to revenue or gains generated by a company that are not directly related to its core business operations. It includes income that arises from activities outside of the company's primary operations or from one-time events. Non-operating income is typically disclosed separately in a company's financial statements to provide transparency and to help stakeholders understand the sources of income beyond the core business activities.
Examples of non-operating income include:
Investment Income: Income generated from investments in stocks, bonds, mutual funds, or other financial instruments. This can include dividends, interest income, and gains from the sale of investments.
Rental Income: Revenue earned from leasing or renting out properties or assets that are not directly used in the company's operations.
Foreign Exchange Gains: Gains resulting from favorable currency exchange rate fluctuations when converting foreign currency transactions back to the company's reporting currency.
Sale of Assets: Income from the sale of non-core assets such as property, equipment, or investments.
Insurance Proceeds: Receipt of funds from insurance claims, such as reimbursements for losses or damages incurred.
Lawsuit Settlements: Income received as a result of legal settlements or judgments.
Extraordinary Gains: Gains from significant events or transactions that are not expected to recur regularly, such as the sale of a subsidiary or a one-time windfall.
Non-operating income is typically listed separately in the income statement to distinguish it from revenue and gains generated from the company's primary business activities. By segregating non-operating income, the financial statements provide a clearer picture of the company's core profitability and performance.
It's worth noting that non-operating income can have a significant impact on a company's overall financial results. However, investors and analysts often focus primarily on the company's operating income or earnings from core operations to assess its ongoing profitability and sustainability.
Wimax Company limited
Non-operating Income
Year-2022 Year-2021
Gain on fire insurance (IF any) xxxx xxxx
Dividend income xxxx xxxx
Interest on FDR xxxx xxxx
Others Income (if any) xxxx xxxx
Non-operating Income (Total) xxxx xxxx