Discontinued Operations
Contents
Demystifying Discontinued Operations in Financial Accounting
Explore the intricacies of discontinued operations in financial accounting and understand how they impact a company's financial statements. From key concepts to reporting requirements, this article provides insights into the world of discontinued operations.
Understanding Discontinued Operations
Delve into the definition of discontinued operations and why they are reported separately on income statements. Learn how investors benefit from the clear distinction between continuing and discontinued operations, especially during mergers and divestitures.
Disclosure on Income Statements
Discover the line items involved in reporting discontinued operations on financial statements. From gains or losses to relevant income taxes, explore how these elements contribute to a company's total net income. Learn about adjustments and allocations related to discontinued operations under generally accepted accounting principles (GAAP).
Discontinued Operations: GAAP vs. IFRS
Contrast the reporting requirements for discontinued operations under GAAP and international financial reporting standards (IFRS). Explore the conditions that must be met for a company to report discontinued operations under each standard and understand the differences in classification and involvement with discontinued operations.