Extraordinary items will be included in the statement of comprehensive income:
A) when they are material and need to be disclosed separately.
B) when an item of revenue or expense is attributable to an event outside the ordinary course of business.
C) when an expense or revenue is of a non-recurring nature.
D) None of the given answers are correct.

Question

Quizplus · Accepted Answer

The concept of "extraordinary items" has been eliminated in many accounting standards, including U.S. GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards). Previously, extraordinary items were events and transactions that were distinguished by their unusual nature and by the infrequency of their occurrence. However, current standards require that items, even if they are unusual or infrequent, be included within the ordinary activities of the business in the income statement, rather than being reported separately as extraordinary items. Therefore, none of the given options are correct under the current accounting frameworks.

Extraordinary Items Will Be Included in the Statement of Comprehensive