The FASB Decides Sept. 11 Costs Aren't 'Extraordinary'

Compiled ByJohn S. McClenahen In a quick and unusual reversal of opinion, a task force of the Norwalk, Conn.-based Financial Accounting Standards Board (FASB) has decided that the costs of the Sept. 11 terrorist attacks on the U.S. are not an "extraordinary item" for accounting purposes. The panel had previously ruled that some losses directly attributable to the events could be classified as "extraordinary" on corporate income statements. The reversal is based on the FASB panel's belief that it "would be impossible to capture" the costs in a single entry on a company's financial statement. "Any approach to extraordinary-item accounting would include only a part, perhaps a relatively small part, of the real effect," the FASB now states.