CFA Practice Question

CFA Practice Question

Infrequent or unusual items
A. such as gains and losses from asset sales are reported above the line before computation of taxes.
B. such as profits and losses from discontinued items are reported on both pre- and post-tax basis after net income from continuing operations.
C. such as expropriation of foreign assets by a government are reported above the line and included in income from continuing operations.
Explanation: Gains and losses are the only examples of unusual or infrequent items, none of the others are, and are reported on a pretax basis as pre-tax income from continuing operations.

User Contributed Comments 6

User Comment
jackwez remember OR... AND is below the line, OR is above the line. Easy question that you don't want to miss.
Dinosaur thank you big time for that ... i will get this question right now
Oarona That's a good one jackwez
bkballa so c is wrong since it is an extraordinary item right? It is both infrequent and unusual?
chandsingh I think so bkballa
bonsuet thanks jackwez
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