What is Unusual or infrequent items?
In short
Items that are unusual in nature or infrequent in occurrence are reported as a separate line within income from continuing operations, or disclosed in the notes. Extraordinary items no longer exist.
Key takeaways
- They are reported before tax, not net of tax.
- No earnings per share figure is shown for them.
- Discontinued operations, by contrast, are shown net of tax below continuing operations.
Where it's tested
FAR: Balance Sheet & Income Statement Preparation — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Following ASU 2015-01, a material event that is both unusual in nature and infrequent in occurrence is reported: