U.S. GAAP identifies two narrow criteria that must be met in order for an event or a
Question:
Required:
1. Identify and explain each criterion.
2. Develop examples of events that might be extraordinary to one company but not extraordinary to another, such as:
a. earthquake
b. flood
c. tornado
d. severe frost Justify your reasoning.
3. Explain how the following are reported on a company's income statement:
a. extraordinary item
b. event or a transaction that does not meet both criteria
GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...
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Related Book For 
Intermediate Accounting Reporting and Analysis
ISBN: 978-1111822361
1st edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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