There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below-
Assertion: Extraordinary items are incomes and expenses that arise from event or transactions that are clearly distinct from the ordinary business activities of the enterprises.
Reasoning: Extraordinary items are not expected to recur frequently or regularly.

Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

Extraordinary items are occurrences that deviate from the usual course of business operations, such as losses incurred due to events like theft, earthquakes, or floods. These instances are considered non-repetitive and unique in nature. Consequently, the associated cash flows related to extraordinary items need to be categorized and presented separately within the framework of operating, investing, or financing activities. This distinct classification facilitates the comprehension of their character and impact on the enterprise's current and prospective cash flows, aiding users in better understanding their implications.