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U.S. comment letter on eliminating extraordinary items from U.S. GAAP

Published on: Sep 30, 2014

Deloitte & Touche LLP has commented on the proposed Accounting Standards Update, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, issued by the FASB in July 2014.

An excerpt from the comment letter is shown below:

We support the Board’s efforts to quickly make improvements to areas of U.S. GAAP that are unnecessarily complex and costly as part of its simplification initiative. We agree that the concept of extraordinary items should be eliminated from U.S. GAAP along with the requirement for entities to separately present such items on the income statement and disclose them in the footnotes. Eliminating the concept should improve the efficiency of the financial reporting process since it will relieve entities from having to (1) identify extraordinary items (i.e., items that both are unusual in nature and occur infrequently) and (2) comply with associated presentation and disclosure requirements. In addition, eliminating the concept of extraordinary items should not disadvantage financial statement users because the proposed ASU would retain the reporting and disclosure requirements for an event that is either unusual in nature or infrequent in occurrence.

Full text of the comment letter is available below.

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