The date on which a gain or loss from the disposal of a segment of a business is measured is the:
A) date that operations cease (if disposal is by abandonment).
B) last day of the fiscal year in which the decision to dispose is made plan.
C) date that the assets are sold.
D) date that the entity makes a formal commitment to disposal.

Question

Quizplus · Accepted Answer

The date that the entity makes a formal commitment to disposal is the date on which a gain or loss from the disposal of a segment of a business is measured. This is in accordance with International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP).

The Date on Which a Gain or Loss from the Disposal