Term
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Definition
Shown: - net of tax
- after continuing operations
- before extraordinary items
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Term
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Definition
Unusual or infrequent occurence (natural disaster). Shown: - net of tax
- just before net income
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Term
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Definition
Displayed: - As part of operating income
- Shown as unusual item
- Can be explained with a footnote
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Term
| Changes in Accounting Principle |
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Definition
Example: LIFO -> FIFO Shown: - Net of tax
- Following extraordinary items
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Term
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Definition
Examples: useful life, salvage value, and % of bad debts - NOT shown net of tax
- NOT retroactive
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Term
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Definition
Items that bypass the income statement and are reported directly in equity. - unrealized gains/losses from available-for-sale securities
- translation gains/losses on foreign currency
- unrealized gains on hedging
Shown in second income statement or reported in stockholder's equity. |
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