Companies report extraordinary items in interim reports by prorating them over the four quarters.

Question

Quizplus · Accepted Answer

Extraordinary items are no longer separately classified and presented in financial statements due to changes in accounting standards such as the adoption of IFRS (International Financial Reporting Standards) and updates to US GAAP (Generally Accepted Accounting Principles). Companies now include unusual or infrequent items as part of their ordinary operations in their financial reporting.

Companies Report Extraordinary Items in Interim Reports by Prorating Them