What term describes highly unusual transactions that are considered infrequent in occurrence?

The term "Extraordinary Items" refers to events or transactions that are both unusual in nature and infrequent in occurrence. These items are distinct from ordinary operational activities and are typically reported separately on a company's financial statements to provide clarity to stakeholders. Examples of extraordinary items can include natural disasters that result in significant losses or regulatory changes that have an unprecedented impact on a firm’s operations.

The inclusion of extraordinary items in the financial statements helps users understand the information and financial results of a business without the distortions caused by these atypical events, allowing for better comparative analysis with periods where such items did not occur.

While terms like "Special Items," "Nonrecurring Items," and "Discontinued Operations" also describe atypical transactions, they have specific definitions and implications that do not encompass the full scope of what is classified as extraordinary. Special items may refer to significant but not necessarily both unusual and infrequent occurrences. Nonrecurring items can refer to various one-time gains or losses that might not fit the strict criteria of being both unusual and infrequent. Discontinued operations pertain specifically to the closure of a business segment and are accounted for separately in the financial statements.

Thus, "Extraordinary Items" is the most accurate term for describing transactions