Non-Operating Activities
Accounting glossary · Understand, connect, apply
Non-operating activities are items presented separately from an entity’s principal operations under the reporting framework and presentation used.
Example
A retailer may show a gain on selling an old delivery vehicle separately from its merchandise sales.
Remember the difference
An item is not automatically non-operating just because it is unusual. Classification depends on the entity and the applicable rules.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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