UK Is this an operating or non-operating expense/income?

[Elisa]

Hello

Please would you help me to understand the following issue?

I’m working for a retail company in the textile sector; we have bought some furniture and re-sold it to our retail stores, so this transaction has generated an income from the selling and an expense from the purchase of the furniture.

I asked a manager in the company who thinks this expense should be classify as operating in “other miscellaneous admin expenses” (and the income as a net amount in the same account).

However, I think this should go “below the line” in “other miscellaneous income/expenses”, since it’s not a recurring and core activity to our business (so non-operating).

Can you please help me to understand if this is an operating or non-operating expense/income?

Thanks in advance

 

[Tyson]

From your explanation, it sounds like non-operating income and expenses to me.