Extraordinary gains and losses must be shown in the financial statements "net of tax."

Question

Quizplus · Accepted Answer

Extraordinary gains and losses are reported in the income statement separately from the company's regular income or loss. However, to accurately reflect the impact of these items on the company's overall financial position, they must be shown net of tax. This means that any taxes paid or owed on these gains or losses are reflected in the financial statements as well.

Extraordinary Gains and Losses Must Be Shown in the Financial