How should a material, infrequent event not meeting the criteria for an extraordinary item be disclosed in the income statement?
A) shown as a separate item in income from continuing operations
B) shown in income from continuing operations but not shown as a separate item
C) shown after income from continuing operations but before extraordinary items
D) shown after extraordinary items net of income tax but before net income

Question

Quizplus · Accepted Answer

A material, infrequent event that does not meet the criteria for an extraordinary item should be shown as a separate item in income from continuing operations to ensure transparency and provide users of the financial statements with relevant information.

How Should a Material, Infrequent Event Not Meeting the Criteria