Accounting Study Guide

U.S. GAAP Codification IFRS International Standards Accounting Topics


Extraordinary Items
(APB 9, APB 30)


U.S. GAAP Codification IFRS Accounting Terms,  Accounting Jobs
Principles of Accounting Intermediate Accounting Advanced Accounting
Accounting Standards ASC Accounting by Topic,  Accounting Textbooks



Financial Statements Overview
 
APB Opinion No. 30


Accounting Principles Board (APB) Opinion No. 30
        a.  Reporting the Results of Operations
             -- Reporting the Effects of Disposal of Segment of a Business,
             and Extraordinary, Unusual and Infrequently Occurring Events and Transactions
        b.  Issued in June 1973

Extraordinary Items
           are events and transactions that are distinguished
           (a)  by their unusual nature
                 and
           (b)  by the infrequency of their occurrence.
                 [Para. 20]

 
 Unusual Nature
           --> high degree of abnormality
           --> clearly unrelated (or only incidentally related)
           --> to the ordinary and typical activities of the enterprise

 Infrequency of Occurrence
           --> not reasonably expected to recur
           --> in the foreseeable future

 Examples of gains and losses NOT reported as extraordinary items
           a.  Write-down or write off of
                --> receivables, inventories, equipment leased to others, or intangible assets
           b.  Gains or losses from
                --> exchange or translation of foreign currencies
           c.  Gains or losses on
                --> disposal of a component of an entity
           b.  Gains or losses from
                --> sale or abandonment of property, plant, or equipment
                      used in the business
           b.  Effects of
                --> a strike

           b.  Adjustment of accruals
                --> on long-term contracts

 Income Statement Presentation
           --> extraordinary items should be reported separately on the income statement
                 (as prescribed APB Opinion No. 9)

 Income Taxes applicable to extraordinary items
           --> should be disclosed on the face of the income statement;
           --> alternatively, disclosure in the related notes is acceptable.
 


APB Opinion No. 9


Accounting Principles Board (APB) Opinion No. 9
        a.  Reporting the Results of Operations
        b.  Issued in December 1966

 Extraordinary Items
           --> should be segregated from the results of ordinary operations
           --> and shown separately in the income statement,
                 (with disclosure of the nature and amounts thereof)



50 Questions on
   Accounting Journal Entries
   2012 Edition for iPhone and iPad
Create your own eBooks
   from iPhone and iPad
   (for iBooks and Kindle)




 
U.S. GAAP Codification
International Financial Reporting Standards (IFRS)
 
Accounting Topics
Inventory Valuation Methods
Depreciation Methods
Revenue Recognition Principle
Accrual Basis vs. Cash Basis Accounting
Basics of Journal Entries
Ratios for Financial Statement Analysis
Overview of Financial Statements









Copyright AccountingStudy.com.TM  All Rights Reserved.