A company does not have to disclose information about the sale of a discontinued component in the notes to its financial statements until the actual sale has occurred.

Question

Quizplus · Accepted Answer

According to accounting standards, a company must disclose information about the sale of a discontinued component, including details about the disposal plan, in the notes to its financial statements as soon as the decision to sell has been made, not only after the actual sale has occurred. This is to ensure transparency and provide stakeholders with relevant information about future changes in the company's operations and financial position.

A Company Does Not Have to Disclose Information About the Sale