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ordinary income vs ordinary profit

The phrases 'ordinary income' and 'ordinary profit' are both correct, but they are used in different contexts. 'Ordinary income' refers to the regular income earned by a business or individual, while 'ordinary profit' typically refers to the profit generated from the normal operations of a business. They are not interchangeable as they convey different meanings.

Last updated: March 30, 2024 • 2001 views

ordinary income

This phrase is correct and commonly used in finance and accounting contexts.

The term 'ordinary income' refers to the regular income earned by a business or individual, excluding any extraordinary or one-time gains or losses.

Examples:

  • The company reported $1 million in ordinary income for the quarter.
  • Individuals are required to report their ordinary income on their tax returns.
  • Ordinary income is an important metric for assessing a company's financial health.
  • Thus, for Norsk Tipping AS, the exemption from ordinary income tax is replaced by a different form of 'taxation'.
  • Thus, the exemption from ordinary income tax for Norsk Tipping AS does not constitute State aid within the meaning of Article 61 EEA.
  • Any income generated by the captive insurance through transactions within the group is not ordinary income that should be subject to income taxation, as the administration of own assets does not constitute a commercial activity subject to taxation.
  • It was therefore considered that this amount should not be considered as an ordinary income to be taken into account in the calculation of the SG&A.
  • It should be noted that capital gains are particular items of income, which, unlike ordinary income, reflect an economic surplus matured over time, while its tax recognition is necessarily a one-time operation.
  • Since these debts were not related to the product concerned and referred to benefits under the work out programme, they do not constitute an ordinary income to be taken into account in the calculation of the SG&A.

Alternatives:

  • regular income
  • normal income

ordinary profit

This phrase is correct and commonly used in business and financial contexts.

The term 'ordinary profit' typically refers to the profit generated from the normal operations of a business, excluding any extraordinary gains or losses.

Examples:

  • The company's ordinary profit margin increased by 5% this year.
  • It is important to distinguish between ordinary profit and one-time gains.
  • Ordinary profit is a key indicator of a company's operational efficiency.
  • When a bank suffers losses, its own resources function as a buffer, which helps to cover the losses that ordinary business profits cannot cover sufficiently.
  • The latter are subject to ordinary taxation on their profits and do not benefit from the tax reduction provided for in Article 12 of Decree-Law No 269/2003.
  • The new Articles of Association provided that the minimum pay-out ratio and maximum pay-out ratio to shareholders would from then on amount to 80 % and 90 % of the ordinary annual profit.
  • On 31 December 2004 Dornbirner Sparkasse had total assets of EUR 1,94 billion, a profit from ordinary activities of ca. EUR 18,4 million and a net profit of EUR 13,0 million.
  • Ordinary shares participate in profit for the period only after other types of shares such as preference shares have participated.
  • 16. Profit or loss on ordinary activities after tax
  • 23. Finally, they claimed that the applicable profit margin should be the margin obtained on domestic sales in the ordinary course of trade.
  • A single currency should end the possibility for speculators to target national currencies and make huge profits at the expense of ordinary citizens, as has occurred in the past.
  • This amount is deducted in calculating profit or loss attributable to ordinary equity holders of the parent entity.
  • SG& A costs and profit were thus based on the representative domestic sales made in the ordinary course of trade by the analogue USA producer.
  • It also considered SGA and profits from Chinese exporting producers that recently obtained MET in other recent investigations and which had domestic sales in the ordinary course of trade.
  • For two of the companies with representative domestic sales, profit made in the ordinary course of trade was used.
  • Such ordinary shares generate no proceeds and have no effect on profit or loss attributable to ordinary shares outstanding.
  • Basic earnings per share shall be calculated by dividing profit or loss attributable to ordinary equity holders of the parent entity (the numerator) by the weighted average number of ordinary shares outstanding (the denominator) during the period.
  • Consequently, the Commission used SG&A expenses and profit rates from the co-operating exporting producer in the analogue country which had domestic sales in the ordinary course of trade.
  • It should first be noted that the profit and SG&A data were based on the company's own domestic sales which were considered to be in the ordinary course of trade.
  • Under these conditions the amount of profit could not be based on actual data from the sampled companies given that the domestic sales are not considered as being made in the ordinary course of trade.
  • As this sampled Union producer submitted and the Commission verified, this is because this profit amount entirely consists of year-end adjustment according to International Accounting Standards ('IAS') concerning the ordinary business activity of the company.
  • The liberalisation of the energy market is increasing the burden on ordinary families whilst safeguarding the profits made by capital, with state guarantees.
  • An entity uses profit or loss from continuing operations attributable to the parent entity as the control number to establish whether potential ordinary shares are dilutive or antidilutive.

Alternatives:

  • regular profit
  • normal profit

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