Final answer:
An extraordinary item must meet the criteria of being both infrequent and unusual. Examples of extraordinary items can include natural disasters, litigation settlements, or major changes in legislation.
Step-by-step explanation:
An extraordinary item must meet the criteria of being both infrequent and unusual. It is not necessary for the item to be foreseeable or material, substantial or measurable. An extraordinary item refers to an event or transaction that is outside the normal course of business and is significant enough to affect the financial statements of a company. Examples of extraordinary items can include natural disasters, litigation settlements, or major changes in legislation.