And then the questions listed in Table 17.1
Below is a list of a number accounting items, which may be non-recurring in nature:
Research and the Carlsberg case shows that there is a tendency to classify more costs (than income) as special items/non-recurring items.
A red flag (in the context of Chapter 17) is a signal of a negative development indicating that ‘something is wrong’ related to a firm’s economic performance. A green flag is the opposite.
A red flag is identified by analysing development of different accounting numbers or ratios over a number of years and compare with peers.