To be reported as an extraordinary item on the income statement,an event must be either unusual in nature or an infrequent occurrence.

Question

Quizplus · Accepted Answer

As of 2015, the Financial Accounting Standards Board (FASB) eliminated the concept of extraordinary items. Prior to this change, an event needed to be both unusual in nature and infrequent in occurrence to be classified as an extraordinary item on the income statement.

To Be Reported as an Extraordinary Item on the Income