How Should a Material, Infrequent Event Not Meeting the Criteria

question 150

Multiple Choice

How should a material, infrequent event not meeting the criteria for an extraordinary item be disclosed in the income statement?

• A) shown as a separate item in income from continuing operations
• B) shown in income from continuing operations but not shown as a separate item
• C) shown after income from continuing operations but before extraordinary items
• D) shown after extraordinary items net of income tax but before net income

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is global in scope.

Equity Investments

Investments in stock or equity interests in entities, representing ownership interest.

Adjusted Trial Balance

A list of all the accounts and their balances after adjusting entries have been made, used to prepare financial statements.

External Reporting

The process of providing financial statement information to external stakeholders such as investors, creditors, and regulatory agencies.