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 supple-mented by a footnote if deemed appropriate.
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

An unusual event that does not meet the criteria for an extraordinary item should be shown as a separate item in operating revenues or expenses if material and supplemented by a footnote if deemed appropriate. This allows users of the financial statements to understand the impact of the event on the company's operations and financial performance. It is important to disclose such events transparently to provide accurate information to stakeholders. Options B, C, and D are not appropriate as they do not provide adequate disclosure of the event.

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