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To: Jonathan Bird who wrote (8600)1/30/1998 12:14:00 PM
From: John Cuthbertson  Read Replies (1) | Respond to of 11057
 
Jonathan,
Well, for one example, we use it at the asset management firm I work for. It's useful because some items really are non-recurring. That's why there are such provisions in accounting rules. Remember, there can be non-recurring gains as well as non-recurring losses. If you're going to compare a series of earnings numbers over time, you do want to exclude extraordinary items to gauge the growth (or decline) rate.

==John