Income From Continuing Operations Before Income Taxes Ebit

While the net income includes the income from the continuing operations as well as the unusual and irregular income and the income from discontinued operations the income from continuing operations only takes into account the revenue generated from regular business activities.

Income from continuing operations before income taxes ebit. Income from continuing operations before income taxes means the consolidated income before income taxes and excluding i discontinued operations. Interest and taxes are excluded because they include the effect of factors other than the profitability of operations. And iii cumulative effect of change in accounting principle. The net income is different from the income from continuing operations.

Ebit is also known as operating income since they both exclude interest expenses and taxes from their calculations. However there are cases when operating income can differ from ebit. Generally accepted accounting principles and as reported in the company s annual. If applicable for the performance period computed in accordance with u s.