Any disposal of a large number of long-lived assets can appropriately be reported in the income statement as results from discontinued operations.

Question

Quizplus · Accepted Answer

Disposal of a large number of long-lived assets is not automatically reported in the income statement as results from discontinued operations. According to accounting standards, for a disposal to be classified under discontinued operations, it must represent a strategic shift that has a major effect on an entity's operations and financial results, such as disposal of a major line of business or a major geographical area of operations.

Any Disposal of a Large Number of Long-Lived Assets Can