§  32.7600   Extraordinary items.

   (a) This account is intended to segregate the effects of events or
   transactions that are extraordinary. Extraordinary events and
   transactions are distinguished by both their unusual nature and by the
   infrequency of their occurrence, taking into account the environment in
   which the company operates. This account shall also include the related
   income tax effect of the extraordinary items.

   (b) This account shall be credited and/or charged with nontypical,
   noncustomary and infrequently recurring gains and/or losses which would
   significantly distort the current year's income computed before such
   extraordinary items, if reported other than as extraordinary items.

   (c) This account shall be charged or credited and Account 4070, Income
   taxes—accrued, shall be credited or charged for all current income tax
   effects (Federal, state and local) of extraordinary items.

   (d) This account shall also be charged or credited, as appropriate,
   with a contra amount recorded to Account 4350, Net noncurrent deferred
   nonoperating income taxes or Account 4110, Net current deferred
   nonoperating income taxes for the income tax effects (Federal, state
   and local) of extraordinary items that have been deferred in accordance
   with § 32.22.

   [ 67 FR 5700 , Feb. 6, 2002]