As stated in the discussion prompt for this week, it can be challenging to decide how to and where to report the various categories of income or loss. The solution that the accounting profession has implemented is called the “modified all-inclusive concept”. This method has accountants record items even if they are irregular or not typical regardless of their materiality and requires that these items be highlighted so that users of the income statement can flag them easily. It is said that it is important to record these types of items because they truly do affect the future profitability of a company’s operations.