My DS is doing two years of math at once- 1st grade in class and 2nd grade for homework. The rationale is that the teacher doesn't have the time/energy/ability/knowledge (depending on who you ask) to teach the 2nd grade stuff to him in class. He can't go up to 2nd grade for math because it happens during his differentiated reading group, which we love. In class he does his 1st grade worksheet then has a challenge bucket with puzzles, sudoku and other stuff to work on.
His report card is completely standards based with a standard listed and then a 1, 2 or 3- one being just beginning the standard 3 being completed. He won't get a "report card" for any of the 2nd grade math and we've basically determined he has already earned 3's for all of the 1st grade standards.