If an operating segment has been discontinued during the year, the gain or loss on disposal:

Question

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Gains or losses on the disposal of an operating segment are displayed net of applicable income taxes in the income statement. This treatment ensures that the financial statements reflect the net impact of the disposal on the entity's financial position and performance, after considering the tax effects. Choices A, B, and C do not accurately describe the accounting treatment for discontinued operations according to generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS).

If an Operating Segment Has Been Discontinued During the Year