Final answer:
Incidental operations are included in operating income under IFRS and, if material, are disclosed in the notes to the financial statements rather than being excluded or treated as extraordinary items.
Step-by-step explanation:
Within the International Financial Reporting Standards (IFRS), incidental operations are included as part of regular business activities and therefore are recorded as such. Incidental operations are not excluded from financial statements; rather, they are included in operating income. The concept of extraordinary items is no longer recognized in IFRS, as these were abolished with the introduction of IAS 1 (revised) in 2009. Therefore, companies are not allowed to present items within profit or loss as extraordinary. Instead, revenues and expenses from incidental operations are included in the determination of profit or loss, and if material, should be disclosed separately in the notes to the financial statements if they are significant enough to impact the understanding of the company's financial performance.