How should an unusual event not meeting the criteria for an extraordinary item be disclosed in the financial statements?
A) Shown as a separate item in operating revenues or expenses if material and combined with other items if not material in amount.
B) Shown in operating revenues or expenses if material but not shown as a separate item.
C) Shown net of income tax after ordinary net earnings but before extraordinary items.
D) Shown net of income tax after extraordinary items but before net earnings.

Question

Quizplus · Accepted Answer

According to US GAAP, if an unusual event does not meet the criteria for an extraordinary item, it should be shown as a separate item in operating revenues or expenses if material and combined with other items if not material in amount. This approach ensures that users of the financial statements can easily identify and understand the impact of the unusual event on the operating results of the entity.

How Should an Unusual Event Not Meeting the Criteria for an Extraordinary