Which of the following is not true regarding a discontinued operation?
A) The discontinued business unit has its own identifiable operations and cash flows.
B) The operations and cash flows of the unit must be removed from the company's continuing operations.
C) The company must have no significant continuing involvement in the discontinued unit's operations after its disposal.
D) The company must have reported its intention to sell the related business unit in the previous year's annual report notes.

Question

Quizplus · Accepted Answer

The company has no obligation to report its intention to sell any of its business units in its income statement or any other reports. The first three conditions, instead, are necessary for a business unit to be qualified as a discontinued operation.

Which of the Following Is Not True Regarding a Discontinued