IFRS Classification (Income stmt)

CFA Level I
#1

Under IFRS, a loss from the destruction of property in a fire would most like be classified as A. continuing operations. B. an extraordinary item. C. discontinued operations. D. a prior period adjustment.

#2

A. IFRS does not allow extraordinary items

#3

under GAAP it would be B?

#4

imo C

#5

its A extraordinary not allowed under IFRS, under GAAP only infrequent and unusual classifies… discontinued operations is from selling off a subsidiary…

#6

Both would be A. Even GAAP considers a fire something that can happen again.

#7

Northeastern Student Wrote: ------------------------------------------------------- > Both would be A. Even GAAP considers a fire > something that can happen again. A is correct under IFRS. If it were GAAP, i think it’s an extraordinary item.

#8

Yup, sounds about right.

#9

i thought so also, i came across a question once that said it was not, only a TRUE natural disaster would be extraordinary…who knows!