Question:
Under both U.S. GAAP and IFRS, which one of the following items is reported separately in the income
statement, net of tax?
a. Restructuring costs.
b. Discontinued operations.
c. Extraordinary gains and losses.
d. None of the above.
Answer:
b. IFRS prohibits reporting extraordinary items, and restructuring costs are not separately reported under
both IFRS and U.S. GAAP. Both IFRS and U.S. GAAP report discontinued operations as a separate
item, net of tax.
Under both U.S. GAAP and IFRS, which one of the following items is reported separately in the income
statement, net of tax?
a. Restructuring costs.
b. Discontinued operations.
c. Extraordinary gains and losses.
d. None of the above.
Answer:
b. IFRS prohibits reporting extraordinary items, and restructuring costs are not separately reported under
both IFRS and U.S. GAAP. Both IFRS and U.S. GAAP report discontinued operations as a separate
item, net of tax.
