How should an unusual event not meeting the criteria for an extraordinary item be disclosed in the financial statements?
A) Shown as a separate item in operating revenues or expenses if material and supple-mented by a footnote if deemed appropriate.
B) Shown in operating revenues or expenses if material but not shown as a separate item.
C) Shown net of income tax after ordinary net earnings but before extraordinary items.
D) Shown net of income tax after extraordinary items but before net earnings.

Question

Quizplus · Accepted Answer

Unusual events that do not meet the criteria for classification as extraordinary items should be disclosed in the financial statements as separate items within operating revenues or expenses if they are material. Additionally, a footnote may be provided for further explanation if deemed appropriate. This approach ensures transparency and provides users of the financial statements with a clear understanding of the nature and impact of such events.

How Should an Unusual Event Not Meeting the Criteria for an Extraordinary