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Extraordinary Items
(APB Opinion No. 30)

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APB Opinion No. 30


Accounting Principles Board (APB) Opinion No. 30
        a.  Reporting the Results of Operations
             -- Reporting the Effects of Disposal of Segment of a Business,
             and Extraordinary, Unusual and Infrequently Occurring Events and Transactions
        b.  Issued in June 1973

 Accounting for the Disposal of a Segment of a Business
                
(APB Opinion No. 30, Para. 13-18)
           --> deleted by SFAS No. 144, August 2001

Extraordinary Items
           are events and transactions that are distinguished
           (a)  by their unusual nature
                 and
           (b)  by the infrequency of their occurrence.
 
 Unusual Nature
           --> high degree of abnormality
           --> clearly unrelated (or only incidentally related)
           --> to the ordinary and typical activities of the enterprise

 Infrequency of Occurrence
           --> not reasonably expected to recur
           --> in the foreseeable future

 Examples of gains and losses NOT reported as extraordinary items
           a.  Write-down or write off of
                --> receivables, inventories, equipment leased to others, or intangible assets
           b.  Gains or losses from
                --> exchange or translation of foreign currencies
           c.  Gains or losses on
                --> disposal of a component of an entity
           b.  Gains or losses from
                --> sale or abandonment of property, plant, or equipment
                      used in the business
           b.  Effects of
                --> a strike

           b.  Adjustment of accruals
                --> on long-term contracts

 Income Statement Presentation
           --> extraordinary items should be reported separately on the income statement
                 (as prescribed APB Opinion No. 9)

 Income Taxes applicable to extraordinary items
           --> should be disclosed on the face of the income statement;
           --> alternatively, disclosure in the related notes is acceptable.








 
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