Extraordinary gains and losses are regarded as value-irrelevant earnings.

Question

Quizplus · Accepted Answer

Extraordinary gains and losses are considered as value-relevant earnings as they have an impact on the overall financial performance of a company. These gains and losses are not related to the company's core operations and are usually considered as one-time events that are not likely to occur again in the future. Therefore, they are important for investors to consider while evaluating the company's financial health and future prospects.

Extraordinary Gains and Losses Are Regarded as Value-Irrelevant Earnings