Discontinued operations must be separated into two components: operating income or loss from the segment that is disposed of and operating gain or loss from the segment that will replace the business being discontinued.

Question

Quizplus · Accepted Answer

Discontinued operations are reported as a single amount on the income statement, which includes the operating income or loss from the discontinued operation and any gain or loss on disposal, not separated into components for the segment being discontinued and a replacing segment.

Discontinued Operations Must Be Separated into Two Components: Operating Income