UBS AG is a global provider of financial services to private, corporate and institutional clients. The company€™s financial businesses are organized on a worldwide basis into three business divisions plus the Corporate Center. Global Wealth Management & Business Banking consists
of three segments: Wealth Management International & Switzerland, Wealth Management US and Business Banking Switzerland.
UPM-Kymmene is a Finnish paper maker. Its core businesses are the production, sales and marketing of magazine papers, newsprint, and fine and speciality papers. Paper operations are supplemented by the sale of converted and wood products.
UBS and UPM-Kymmene publish the following information (source: Annual reports 2011). The detail of the extraordinary income and expenses included in the accompanying financial statements are as follows:

In the Notes one can find additional information regarding the composition of extraordinary income and expenses:

Required
1 For each firm, how well do expenses and income reported correspond to the definitions of extraordinary items indicated in section 6 of this chapter.
2 What do you think of the terminology used by UBS and UPM-Kymmene? How helpful are the categories provided by each firm for an investor to understand the implication of these items on future performance?
3 For UBS Bank, reconcile the figures reported in the income statement and the additional information found in the notes. What do you notice?

in CHF million 31-Dec-1131-Dec-10 31-Dec-09 Profit before extraordinary items and taxes Extraordinary income Extraordinary expenses Tax expense Profit/(loss) for the period 4,434 1,888 (649) (232) 5,441 2,369 3,957 (178) (25) 6,123 (5,600) 688 (49) (80) (5,041) 31-Dec-11 31-Dec-10 Note 4 Extraordinary income and expenses (CHF million) Gains from sale of subsidiaries and other participations Reversal of impairments and provisions of subsidiaries and othe 31-Dec-09 192 1,352 601 2,337 393 265 participationsa Prior period related income Other extraordinary income Total extraordinary income Losses on the disposal of subsidiaries and other participations Prior period related expenses lotal extraordinary expenses 280 64 1,888 (10) (639) (649) 968 51 3,957 (18) (160) (178) 658 (48) (48) 2011 includes prior period related adjustments. D In 2011 mainly related to equity compensation plans, hedge accounting and financial liabilities designated at fair value. e In 2011 mainly related to valuation corrections on issued structured products, investments in subsidiaries and other participations, hedge accounting and other valuation adjustments, as well as a release of amounts recognized in other liabilities Note 5 Year ended 31 Dec. 2010 EUR m 2011 2009 Extraordinary income Group contributions received Gains on mergers Total Extraordinary expenses Group contributions paid Other items 19 0 19 14 0 14 3 4 -41 93 0 93 79 -41 3 Total