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Treatment of Extraordinary items As per Ind AS.
In Ind As FS, Extraordinary items are not considered. if a company has some Extraordinary item, then where it will be shown in Ind As FS. Thnx.
Replies (5)
Quick Summary
Indas 1.87 it cannot be shown nor disclosed
OK sir but since it is monetory in nature, it needs to be accounted for somewhere in FS. kindly clarify. Thmx
In January 2015, the Financial Accounting Standards Board (FASB) eliminated the concept of extraordinary items.
Ok but sir but then how such type of income will be shown in Ind-As. ?
In AS we usually put extraordinary item line item after taxes because it has a tax relief. But in IFRS, indas, what is the loss or gain you have to report it in a normal classification.
Example:
Due to floods your warehouse inventory is rotted- treat it normally as
Dr. Inventory writeoff
Cr. Inventory
Due to some bad debt written off guy returning the money back to you
Dr. Bank
Cr. Bad debt written off guy
So transactions will fall into the headings of indas 1 standard. You don't have to make a seperate line item for this nor notes.
Just treat it like a normal transaction
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