A material realized gain or loss on an intercompany investment in bonds is displayed as an extraordinary item in the consolidated income statement.

Question

Quizplus · Accepted Answer

Extraordinary items are no longer classified as such in financial statements according to current accounting standards (e.g., U.S. GAAP and IFRS). Gains or losses from intercompany investments are typically eliminated in consolidation and not shown as separate items in the consolidated income statement.

A Material Realized Gain or Loss on an Intercompany Investment