IA Extraordinaries

Definition

These are income statement items that are unusual in nature and infrequent in occurrence. Examples include a loss from an earthquake in Wisconsin and a loss from a country taking over a company's oil refinery .

The amounts shown on the income statement will include the gross amount and the net amount after deducting the income tax expense or savings associated with the item. Extraordinary items will appear on the income statement near the end of the income statement after discontinued operations and before the cumulative effect from a change in an accounting principle. Extraordinary items will also be shown on a per share basis, if the company's stock is publicly traded.

The amounts shown on the income statement will include the gross amount and the net amount after deducting the income tax expense or savings associated with the item. Extraordinary items will appear on the income statement near the end of the income statement after discontinued operations and before the cumulative effect from a change in an accounting principle. Extraordinary items will also be shown on a per share basis, if the company's stock is publicly traded.

Examples of items that could be classified as extraordinary are:

the destruction of facilities by an earthquake, or the destruction of a vineyard by a hailstorm in a region where hailstorm damage is rare. Conversely, an example of an item that does not qualify as extraordinary is weather-related crop damage in a region where such crop damage is relatively frequent. International Financial Reporting Standards (IFRS) do not use the concept of an extraordinary item at all