OK, let’s start with something positive. The FASB recently issued proposals to simplify two accounting topics, and whaddya know, I am actually in favor of one of them.
The “extraordinary item” income statement category is rarely used, and the highly restrictive criteria for its use may even result in misleading signals to analysts. The stated goal for the FASB’s simplification initiative is to “…improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of the financial statements,” so the proposal to eliminate presentation as an extraordinary item is low-hanging fruit. In addition to benefitting users, it is a slight windfall to educators who would be burdened by one fewer set of arbitrary technical rules to cover in the infamously bloated Intermediate Accounting curriculum.