Extraordinary Items

Extraordinary items are material events and transactions that are (1) unusual and
(2) infrequent. Both of those conditions must exist in order for an event or transaction to be reported as an extraordinary item.
To be unusual, an event or transaction must be highly abnormal or clearly unrelated to the ordinary and typical activities of banks. An event or transaction that is beyond bank management’s control is not automatically considered to be unusual.
To be infrequent, an event or transaction should not reasonably be expected to recur in the foreseeable future. Although the past occurrence of an event or transaction provides a basis for estimating the likelihood of its future occurrence, the absence of a past occurrence does not automatically imply that an event or transaction is infrequent.
Only a limited number of events or transactions qualify for treatment as extraordinary items. Among these are losses which result directly from a major disaster such as an earthquake (except in areas where earthquakes are expected to recur in the foreseeable future), an expropriation, or a prohibition under a newly enacted law or regulation.
For further information, see ASC Subtopic 225-20, Income Statement