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under GAAP what are extraordinary Items?
- items that are
- 1) material in nature
- 2) significantly different than normal business activity
- 3) and not expected to recure in the foreseeable future and
- 4) not normally considered in evaluating the ordinary operating results of an enterprise
- the important word in the above items is And
How are extraordinary items discolsed?
- they are discolsed in the income statement net of any related tax effects, after discontinued operations
- this is the "E" in the IDEA mnomic.
How ar gains or losses from extinguishment of long term debt treated when they are not part of the enitiy's recurring operations and they are considered unusual and infrequent?
becuase they are unsual and infrequent and not part of normaal operations they would be considered extraodinary.
How are events that are material and unusual Or infrequent treated?
Items of income that are either unusual or infrequent are not extraordinary. Therefore, if material, these items should be reported as a separate line item as part of income from continuing operations. The nature of the items and the financial effects should be disclosed on the face of the income statement in non operating income or in the footnotes.
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