Transitory items are disclosed separately on the income statement so that statement users can place less weight on these earnings components when forecasting future profitability.

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Transitory or non-recurring items are typically disclosed separately on the income statement to allow readers to better understand the underlying, ongoing profitability of a business. By identifying and separating out one-time gains or losses, such as a large litigation settlement or a restructuring charge, investors and analysts can adjust their financial models and forecasts accordingly. This can help them to make more accurate predictions about a company's future earnings potential.

Transitory Items Are Disclosed Separately on the Income Statement So