we have nothing to do there
2. Why is it necessary to separate the irregular items in the income statement?
How are extraordinary items different from some other irregular items that you occasionally see on a corporate income statement (e.g., items such as restructuring costs, currency gain on foreign exchange transactions, etc.)?
According to accounting standard it is necessary to present irregular items in the income statement separately. Otherwise they can make confusion to user of income statement.
Extraordinary items are caused by outsiders especially terror, weather and government policy. Usually other irregular items which are discontinued operation they depend on company’s probable loss and decision of management.
What is an extraordinary item per GAAP rules? The rules are specific. Features of Extraordinary Items per GAAP are:
1. Unusual nature
2. Occurred not frequently http://accountinginfo.com/financial-accounting-standards/asc-200/225-20-extraordinary-items.htm
Do you believe that the terrorist attack on 9/11/01 was an extraordinary event for financial reporting purposes? Do you believe that the losses from Hurricane Katrina in 2005 should have been reported as extraordinary losses by the companies affected? What about Hurricane Sandy in November, 2012?
Yes they all are Extraordinary Event for financial reporting as they are not usual in nature, not event occurred frequently. No one can could assume of possibility of there deserters.
3. How is net income different from comprehensive income? Is the comprehensive income amount always bigger than the net income amount?
To calculate net income or loss we add all revenues and deduct expenses, but in comprehensive income we add unrealized gain or loss of investment. If unrealized gain added the amount will be bigger but if there is unrealized loss which will be subtracted amount of comrahasive income will be lower than net income. http://www.ehow.com/info_8754360_net-income-vs-comprehensive-income.html What
How are extraordinary items different from some other irregular items that you occasionally see on a corporate income statement (e.g., items such as restructuring costs, currency gain on foreign exchange transactions, etc.)?
According to accounting standard it is necessary to present irregular items in the income statement separately. Otherwise they can make confusion to user of income statement.
Extraordinary items are caused by outsiders especially terror, weather and government policy. Usually other irregular items which are discontinued operation they depend on company’s probable loss and decision of management.
What is an extraordinary item per GAAP rules? The rules are specific. Features of Extraordinary Items per GAAP are:
1. Unusual nature
2. Occurred not frequently http://accountinginfo.com/financial-accounting-standards/asc-200/225-20-extraordinary-items.htm
Do you believe that the terrorist attack on 9/11/01 was an extraordinary event for financial reporting purposes? Do you believe that the losses from Hurricane Katrina in 2005 should have been reported as extraordinary losses by the companies affected? What about Hurricane Sandy in November, 2012?
Yes they all are Extraordinary Event for financial reporting as they are not usual in nature, not event occurred frequently. No one can could assume of possibility of there deserters.
3. How is net income different from comprehensive income? Is the comprehensive income amount always bigger than the net income amount?
To calculate net income or loss we add all revenues and deduct expenses, but in comprehensive income we add unrealized gain or loss of investment. If unrealized gain added the amount will be bigger but if there is unrealized loss which will be subtracted amount of comrahasive income will be lower than net income. http://www.ehow.com/info_8754360_net-income-vs-comprehensive-income.html What