Extraordinary Items - Extraordinary Items :Theyare...

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Extraordinary Items Extraordinary items  are events and transactions that meet two conditions: They are  unusual in  nature  and  infrequent in occurrence . To be considered  unusual , the item should be abnormal and  only incidentally related to the customary activities of the entity. To be regarded as  infrequent , the  event or transaction should not be reasonably expected to recur in the foreseeable future. A company must evaluate both criteria in terms of the environment in which it operates. Thus,  Weyerhaeuser Co.  reported the $36 million in damages to its timberland caused by the eruption of  Mount St. Helens as an extraordinary item because the event was both unusual and infrequent. In  contrast,  Florida Citrus Company  does not report frost damage to its citrus crop as an extraordinary  item because frost damage is not viewed as infrequent. Helpful Hint
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Extraordinary Items - Extraordinary Items :Theyare...

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