Skip to main content
Board of Directors
2018-2019 Officers Announced
NEW! Sponsor an e-Learning Webinar
US Tax Reform - Changes Today and Beyond (7-10-18)
Technology Innovation Award Winner Webinar (6-21-18)
2018 NAIC Spring Meeting Review (Archived 5-2-2018)
Economic Outlook 2018 (Archived 4-25-2018)
P&C Financial Accounting - Solution Provider Overview (Archived 4-3-2018)
Leveraging Blockchain Technologies to be Transformed (Archived 3-22-2018)
PowerPoint: Building Your Presentation from Scratch (Archived 2-15-2018)
How to Give Feedback (Archived 2/22/2018)
2017 NAIC Fall Meeting Review (Archived 1-10-18)
Key 2017 Annual Statement Changes_GAAP Update (Archived 12-18-17)
Economic Outlook 2018 (Archived 12-7-17)
Refreshing the NYDFS: Cyber Security Best Practices (Archived 11-16-17)
2017 NAIC Summer Meeting Review (Archived 10-12-17)
Excel Tips and Tricks: Dashboards (Archived 9-27-2017)
Expense Management and Budgeting (Archived 9-6-2017)
How to Act Like an Entrepreneur...(Archived 7-20-2017)
e-learning Internal Training Archive
In-Person Education Programs
Executive Education Program
Local Chapter Events
Solution Provider Program
Statutory Accounting Training
On-Line Education Programs
Other Education Resources
Statutory Accounting Seminars
Continuing Education Credit
Top 30 Under 30
Skip breadcrumb navigation
Taking the "Extra" Out of the Extraordinary
By Nina Hurley, CPA, Senior Associate, Johnson Lambert LLP
Extraordinary items mean extra work, extra disclosures, and extra confusion for financial statement preparers. Well, not anymore! Effective for fiscal years beginning after December 15, 2015, special treatment for extraordinary items will be eliminated.
Although segregating extraordinary items on the face of the financial statements and disclosures was intended to create transparency, financial statement users noted that segregation is unnecessary to identify such items.
Continue Reading from the eInterpreter...
Further, extraordinary items are extremely difficult to define, essentially, an item is extraordinary if it is not ordinary, making classification and disclosure more obscure than clear for financial statement preparers and auditors.
What does this mean for financial statement preparers? All items will flow through the financial statements as ordinary. Only certain items formerly known as extraordinary may still be disclosed, such as major transactions or business plan changes.
This change brings GAAP in line with international standards. The update may be applied prospectively or retrospectively and early adoption is permitted. Hopefully this change will make things much easier for financial statement preparers!
For more information, contact Nina Hurley at email@example.com or (802)383-4827.
Return to the March eInterpreter