CFA Practice Question

CFA Practice Question

Which of the following would not be reported as an extraordinary item?
A. uninsured loss from a flood
B. gain or loss from passing of a new law
C. gain or loss from early retirement of debt
Explanation: An item must be both unusual and infrequent (and material in amount) to be classified as extraordinary. Gains and losses from the early retirement of debt were treated as extraordinary items but SFAS No. 145 (2002) now requires them to be treated as part of continuing operations.

User Contributed Comments 6

User Comment
nick1981 I believe this is outdated, my 2012 Schweser book claerly states that early retirement of debt be treated as extraordianry item. (see book 3, page 25)
carnival then your Schweser book is wrong. Check the textbook: gains and losses from early ....was treated as extraordinary items but not any more.
takor nick1981, are you still using the 2012 Schweser books?
mpapwa22 Nick1981....can u get current books ASAP. You r playing with fire...lol
blink78597 2012? jesus christ
sunday128 Outdated... 2012 right...
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