Unusual Gains and Losses - exchange as extraordinary items...

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Unusual Gains and Losses Because of the restrictive criteria for extraordinary items, financial statement users must carefully examine the financial statements for items that are unusual or infrequent but not both . Recall that companies cannot consider items such as writedowns of inventories and transaction gains and losses from fluctuation of foreign
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Unformatted text preview: exchange as extraordinary items. Thus, companies sometimes show these items with their normal recurring revenues and expenses. If not material in amount, companies combine these with other items in the income statement. If material, companies must disclose them separately, and report them above “Income (loss) before extraordinary items.”...
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