Generally Accepted Accounting Principles
in the United States

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Reporting the Results of Operations
(APB Opinion No. 9)

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APB Opinion No. 9

Accounting Principles Board (APB) Opinion No. 9
        a.  Reporting the Results of Operations
        b.  Issued in December 1966
        c.  APB Opinion No. 9 supersedes ARB No. 49 (Earnings per Share)
        d.  Earnings per Share related paragraphs of APB Opinion No. 9
             --> deleted by APB Opinion No. 15 (Earnings per Share), May 1969

 Rules about Earnings per Share
        a.  ARB No. 49, April 1958
             --> superseded by APB Opinion No. 9, December 1966

        b.  Earnings per Share related paragraphs of APB Opinion No. 9
             --> deleted by APB Opinion No. 15, May 1969

        c.  APB Opinion No. 15
             --> superseded by SFAS No. 128, February 1997

 Rules about Extraordinary Items
        a.  APB Opinion No. 9, December 1966
             --> amended by APB Opinion No. 30, June 1973

 Extraordinary Items
           --> should be segregated
                 from the results of ordinary operations

           --> and shown separately
                 in the income statement.

 Prior Period Adjustments
           When prior period adjustments are recorded,
           --> the resulting effects on
                 the net income of prior periods
                 should be disclosed
                 for the year in which the adjustments are made

           --> Restatement of reported net income

 Capital Transactions
           Items that are excluded from net income (or the results of operations)
                a.  Transactions in the company's own capital stock
                b.  Transfers to and from retained earnings
                c.  Adjustments made due to a quasi-reorganization

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
           (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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