A manufacturer could classify a loss from a plane crashing into its factory building as an extraordinary item.

Question

Quizplus · Accepted Answer

An extraordinary item is an event or transaction that is unusual in nature, infrequent in occurrence, and material in amount. A plane crashing into a factory building would certainly meet these criteria and could therefore be classified as an extraordinary item for financial reporting purposes.

A Manufacturer Could Classify a Loss from a Plane Crashing