disclosure of extraordinary events

If such an event as you mention occurred after the end of the reporting period, the relevant IFRS is IAS 10.

If it occurred during the period reported on, the relevant standard is IAS 1. Please note that such events cannot be described as “extraordinary”.

“An entity shall NOT present ANY items of income or expense as extraordinary items, in the statement(s) presenting profit or loss and other comprehensive income or in the notes.” [para 87]

“When items of income or expense are material, an entity shall disclose their nature and amount separately.” [para 97]

So if inventory or PPE was written down because of a fire before the year, the amount of the write down/impairment could be shown as a separate line item in the statement of profit and the event (the when and where of the fire) disclosed in the notes to the financial statements.

In theory, non-compliance with IAS 1 would be the grounds for qualification of an audit opinion BUT it is highly unlikely that this would be seen in practice for two main reasons:
1) It is highly likely that the company would want to show an item separately as material – even though it can’t be described as “extraordinary”, it would then be identified as a “one-off” so that users of the financial statements could disregard it in their analysis of the company’s performance.
2) It is a matter of non-statutory disclosure (unlike transactions with directors, say) and has no effect on reported profit.

You’re welcome Dennis!