If an item meets one (but not both) of the criteria for an extraordinary item, i

ID: 2482986 • Letter: I

Question

If an item meets one (but not both) of the criteria for an extraordinary item, it

may be treated as sales revenue (if it is a gain) and as an operating expense (if it is a loss).

is reported at its gross amount as an "other revenue or gain" or "other expense or loss."

only needs to be disclosed in the footnotes of the financial statements.

is reported as an "other revenue or gain" or "other expense and loss," net of tax.

may be treated as sales revenue (if it is a gain) and as an operating expense (if it is a loss).

is reported at its gross amount as an "other revenue or gain" or "other expense or loss."

only needs to be disclosed in the footnotes of the financial statements.

is reported as an "other revenue or gain" or "other expense and loss," net of tax.

D is the correct option

is reported as an "other revenue or gain" or "other expense and loss," net of tax.

Extraordinary items are reported net of tax in a separate section of the income statement immediately below discontinued operations.

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