Suppose a severe storm floods a company's headquarters,causing damages to the building of $300,000 and destruction of inventory of $200,000.Because of the unusual nature of this event,the company had no flood insurance to cover these losses.Under IFRS,how much would the company report as an extraordinary loss in the current year's income statement?

Question

Quizplus · Accepted Answer

Under IFRS, extraordinary items are not recognized separately in the income statement. All losses, including those from unusual events like floods, are included in the regular income statement without separate extraordinary classification.

Suppose a Severe Storm Floods a Company's Headquarters,causing Damages to the Building