Financial Research Report

A company can be valued based on its estimated future income. Sustainable income refers to the earnings that are required by an organization to meet its primary costs that is most likely to be earned in the future. It is the net income that is deducted for irregular items. There are three types of irregular items that can be found in the income statement. These are; operations that have been stopped and are now obsolete, events and items that do not ordinarily occur, and alterations that are made to the principles of accounting. Irregular items may include gains, expenses, losses and extra-ordinary income.