"I think it would have been useful to have an extraordinary category.
"I'm disappointed and I am surprised," Hill said of the FASB decision. That allows analysts and investors a standardized method to compare results between companies and over time at the same company.īut the decision may actually allow companies to break out more costs, not fewer, due to the attack, said Chuck Hill, director of research for earnings tracker First Call. 11 attack on quarterly income statements.Ĭompanies often exclude charges from restructuring, closings of operations or other significant changes in operations as a extraordinary event that does not affect results from ongoing operations. Statement from Financial Accounting Standards Board "While the events of September 11 were certainly extraordinary, the financial reporting treatment that uses that label would not be an effective way to communicate the financial effects of those events and should not be used in this case." "While the events of September 11 were certainly extraordinary, the financial reporting treatment that uses that label would not be an effective way to communicate the financial effects of those events and should not be used in this case," said a statement issued Monday by the board, which sets guidelines for businesses to follow when reporting results. 11 terrorist attacks are not "extraordinary" events, meaning companies are supposed to include the impact of the event as part of their continuing business operations. NEW YORK (CNNfn) - A task force of the Financial Accounting Standards Board has decided that the Sept. 1, 2001Īccounting board: Firms can't account for attacks as extraordinary items FASB says attacks not 'extraordinary' - Oct.