ASC

ASC 225-20

Unusual or Infrequently Occurring Items

225 Income Statement

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In brief

IntroductoryPresentationFinancial statement presentationDisclosureTransition and effective dates

ASC 225-20 formerly governed the reporting of extraordinary items (events both unusual in nature and infrequent in occurrence) and unusual or infrequently occurring items in the income statement. Every paragraph has been superseded: ASU 2015-01 eliminated the extraordinary item concept and its separate net-of-tax presentation below income from continuing operations, and Maintenance Update 2017-19 removed the remaining shell paragraphs after the transition period ended. Presentation and disclosure of material unusual or infrequently occurring items now resides in ASC 220-20 (Income Statement—Unusual or Infrequently Occurring Items).

Key points (7)
  • ASU 2015-01 superseded the extraordinary items guidance in 225-20-45-1 through 45-15 and the related disclosures in 225-20-50-1, 50-2, and 50-4, eliminating the concept of extraordinary items from U.S. GAAP.
  • Because the extraordinary item classification no longer exists, entities may not segregate any event or transaction net of tax below income from continuing operations as extraordinary.
  • Maintenance Update 2017-19 superseded the remaining scope, overview, implementation, and cross-reference paragraphs (225-20-05-1, 15-1, 45-16, 50-3, 55-1 through 55-3, 60-3), leaving the subtopic with no operative guidance.
  • The transition guidance at 225-20-65-1 was itself superseded on 07/05/2017 after the transition period stated in ASU 2015-01 ended.
  • Material events or transactions that are unusual in nature or infrequent in occurrence (but not both) are still reported as a separate component of income from continuing operations, or disclosed in the notes, under successor guidance now codified in ASC 220-20.
  • Amounts of unusual or infrequently occurring items may not be presented net of income taxes on the face of the income statement.
  • As part of the Codification restructuring, Topic 225 content was relocated to Topic 220 (Income Statement—Reporting Comprehensive Income).

For students. Exam questions still test the old rule, so know that extraordinary items were abolished by ASU 2015-01 — the common mistake is assuming a rare, catastrophic loss can still be shown net of tax below continuing operations. It cannot; at most it is a separately captioned, pretax line within continuing operations under ASC 220-20.

extraordinary itemsunusual in natureinfrequency of occurrenceincome from continuing operationsincome statement presentationsuperseded guidancesimplification initiativenet-of-tax presentation

Machine-generated study aid for ASC 225-20. Check the source paragraphs below.

225-20-00Status

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225-20-00-1
The following table identifies the changes made to this Subtopic.
Paragraph Active Accounting Standards Update Date
Extraordinary Items Superseded Accounting Standards Update No. 2015-01 01/09/2015
Infrequency of Occurrence Superseded Maintenance Update 2017-19 (PDF) 11/15/2017
Infrequency of Occurrence Amended Accounting Standards Update No. 2015-01 01/09/2015
Unusual Nature Superseded Maintenance Update 2017-19 (PDF) 11/15/2017
Unusual Nature Amended Accounting Standards Update No. 2015-01 01/09/2015
225-20-05-1 Superseded Maintenance Update 2017-19 (PDF) 11/15/2017
225-20-05-1 Amended Accounting Standards Update No. 2015-01 01/09/2015
225-20-15-1 Superseded Maintenance Update 2017-19 (PDF) 11/15/2017
225-20-15-2 Superseded Accounting Standards Update No. 2015-01 01/09/2015
225-20-45-1 through 45-15
 Superseded Accounting Standards Update No. 2015-01 01/09/2015
225-20-45-16 Superseded Maintenance Update 2017-19 (PDF) 11/15/2017
225-20-45-16 Amended Accounting Standards Update No. 2015-01 01/09/2015
225-20-50-1 Superseded Accounting Standards Update No. 2015-01 01/09/2015
225-20-50-2 Superseded Accounting Standards Update No. 2015-01 01/09/2015
225-20-50-3 Superseded Maintenance Update 2017-19 (PDF) 11/15/2017
225-20-50-3 Amended Accounting Standards Update No. 2015-01 01/09/2015
225-20-50-4 Superseded Accounting Standards Update No. 2015-01 01/09/2015
225-20-55-1 through 55-3
 Superseded Maintenance Update 2017-19 (PDF) 11/15/2017
225-20-55-2 Amended Accounting Standards Update No. 2015-01 01/09/2015
225-20-55-3 Amended Accounting Standards Update No. 2015-01 01/09/2015
225-20-55-4 Superseded Accounting Standards Update No. 2015-01 01/09/2015
225-20-60-1 Superseded Accounting Standards Update No. 2015-01 01/09/2015
225-20-60-2 Superseded Accounting Standards Update No. 2015-01 01/09/2015
225-20-60-3 Superseded Maintenance Update 2017-19 (PDF) 11/15/2017
225-20-60-3 Amended Accounting Standards Update No. 2015-01 01/09/2015
225-20-65-1 Added Accounting Standards Update No. 2015-01 01/09/2015

225-20-05Overview and Background

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225-20-15Scope and Scope Exceptions

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225-20-20Glossary

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225-20-45Other Presentation Matters

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225-20-50Disclosure

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225-20-55Implementation Guidance and Illustrations

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225-20-60Relationships

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225-20-65Transition and Open Effective Date Information

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225-20-65-1
Paragraph superseded on 07/05/2017 after the end of the transition period stated in Accounting Standards Update No. 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.

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