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 and supplemented by a footnote if deemed appropriate
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

According to GAAP, material, infrequent events that do not meet the criteria for an extraordinary item should be shown as a separate item in income from continuing operations and supplemented by a footnote if deemed appropriate. This allows for transparency and clarity in the financial statements.

How Should a Material, Infrequent Event Not Meeting the Criteria