- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 18. Understanding Income Statements
- Subject 4. Non-Recurring Items and Non-Operating Items
CFA Practice Question
Which of the following can be considered unusual or infrequent items?
II. Gains or losses from sales of assets
III. Provisions for environmental remediation
IV. Impairments and write-offs
I. Gains or losses from disposal of a portion of a business segment
II. Gains or losses from sales of assets
III. Provisions for environmental remediation
IV. Impairments and write-offs
A. I, II and III
B. I, II and IV
C. I, II, III and IV
Explanation: The following can be considered as unusual or infrequent items:
- Gains or losses from disposal of a portion of a business segment
- Gains or losses from sales of assets
- Provisions for environmental remediation
- Impairments and write-offs
User Contributed Comments 6
| User | Comment |
|---|---|
| MattNYC | why isn't I considered income from discontinued operations?? I don't get it. It shouldn't be part of Infrequent or U |
| MattNYC | Nevermind - the question states a "portion" of a business segment - thus it is Unusual or Infrequent |
| nzdavid | Provision for environmental remediation isn't so unusual and infrequent these days.. |
| jejasin | I didn't realize that II was considered infrequent...only got it right because II was in every option |
| bwhitele | I think II implies the sale of fixed assets that is why it would be infrequent in nature because the main assets that would be sold frequently are inventories and maybe marketable securities |
| andrej0143 | Thought provisions for environment remediation was standard in the modern world |