Changed the rules regarding extraordinary items

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Reference no: EM131208067

FASB recently changed the rules regarding extraordinary items (although our textbook had the prior guidance). Under the new rules, extraordinary items are no longer allowed.

GAAP still; however, allows managers to identify discontinued operations and report these activities separately in the income statement. What is the rationale that FASB uses to allow this special classification?

Do you agree with FASB’s decision to still allow managers to report discontinued operations separately? Why or why not?

Reference no: EM131208067

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