Note X – Extraordinary and/or Special Items

Note X – Extraordinary and/or Special Items

A template for this note is not available. See “Instructions to preparer:” for various disclosures that may be required.


Instructions to preparer:

Extraordinary items are events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence. Thus, both of the following criteria should be met to classify an event or transaction as an extraordinary item:

a. Unusual nature ‑ the underlying event or transaction should possess a high degree of abnormality and be of a type clearly unrelated to, or only incidentally related to, the ordinary and typical activities of the entity.

b. Infrequency of occurrence ‑ the underlying event or transaction should be of a type that would not reasonably be expected to recur in the foreseeable future.

Special items are significant items subject to management’s control that meet one but not both of the criteria used for identifying extraordinary items.

Descriptive captions and the amounts for individual extraordinary/special events or transactions should be presented, preferably on the face of the financial statement, if practicable; otherwise disclosure in related notes is acceptable. The nature of an extraordinary/special event or transaction and the principal items entering into the determination of an extraordinary gain or loss should be described.