Extraordinary items accounting4/25/2023 Thus, a business might never report an extraordinary item. In nearly all cases, an event or transaction was considered to be part of the normal operating activities of a business, and so was reported as such. The reporting of an extraordinary item used to be an extremely rare event. International Financial Reporting Standards ( IFRS) do not use the concept of an extraordinary item at all. The formal use of extraordinary items has been eliminated under Generally Accepted Accounting Principles ( GAAP), so the following discussion should be considered historical in nature. An extraordinary item in accounting is an event or transaction that is considered abnormal, not related to ordinary company activities, and unlikely to recur in the foreseeable future.
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