Reconsidering the Income Statement

A recent article on the McKinsey & Company website reconsiders how the income statement might be restated to better reflect operating and non-operating income. Simply, the income statement would be divided into two parts: recurring operating income in one part and non-operating income/expenses and nonrecurring items in the other. The thought is that it would better reflect true recurring earnings, provide a better basis for comparison and eliminate duplicative work. Read the complete article here.