G/L retirement of debt

N

noseykibitzer

New member
Joined
Apr 10, 2006
Messages
0
Reaction score
0
Is a Gain/Loss on early retirement of debt still and extra-ordinary item? My CMA stuff says no? My CFA stuff says yes...not sure which one is correct
 
i dont think so......I don't see how conceptually it meets the criteria for being an extra item. strange in occurrence and infrequent in nature.........how many companies have debt? lots lots and lots........retiring debt isnt strange really? just my $.02
 
i dont think so......I don't see how conceptually it meets the criteria for being an extra item. strange in occurrence and infrequent in nature.........how many companies have debt? lots lots and lots........retiring debt isnt strange really? just my $.02
 
Infrequent or Unusual, usually.
Infrequent and Unusual, No.

It might not even be treated as infrequent or unusual, consider a bond dealer who holds an inventory of bonds for sale, gains and losses may be a regular part of business.



Edited 1 time(s). Last edit at Thursday, April 20, 2006 at 12:04AM by jamespucyk.
 
Hi Folks,
According to what i understand and have read in the CPA Material Gain/loss on retirment of debt is an unusual or infrequent and is considered as part of continuing operations in the income statement.

Study hard!! Bbye!
 
According to CFAI and Schweser Notes, there are three items that are are Extraordinary:

1. Expropriation of assets.
2. Early retirement of debts.
3. Uninsured losses from natural disasters.

Therefore, G/L from such transactions should be Below the Line.
 
http://www.google.com/search?hl=en&lr=&q=gain+or+loss+on+early+retirement+of+debt+extraordinary
 
You must log in or register to reply here.
Back
Top