Income Statement Discontinued Operations Example

A company s income statement summarizes the revenues expenses and profits for an accounting period.

Income statement discontinued operations example. The following is a historical example from the dot com era to demonstrate how continuing operations and discontinued operations might arise on the income statement. It represents the after tax gain or loss on sale of a segment of business and the after tax effect of the operations of the discontinued segment for the period. Disclose the results from discontinued operations on the income statement or in accompanying notes. Viacom and simon schuster in the 1990s viacom owner of mtv vh1 and nickelodeon purchased paramount studios.

Also if there is any gain or loss on disposal then it. Examples of these adjustments are. There is a group a containing a subsidiary x which at some point is classified as a discontinued operation under ifrs 5. Additional discontinued operations disclosure rules.

Intragroup transactions with discontinued operations. Income statement and discontinued operations duration. Multi step income statement with discontinued operation duration. A discontinued operation is a separate major business division or geographical operation that the company has disposed of or is holding for sale.

Company which comprise the consolidated statement of financial position as at 31 december 2015 the consolidated statements of profit or loss and other comprehensive income changes in equity and cash flows for the year then ended and notes comprising a summary of significant accounting policies and other explanatory information. Below is an example of a single step income statement containing discontinued operations. If there were adjustments for disposal related amounts previously reported for discontinued operations they should be classified separately within the discontinued operations section of the income statement in the current period. Treatment of intragroup transactions with discontinued operations.

Income statement discontinued operations example. Income or loss from discontinued operations is a line item on an income statement of a company below income from continuing operations and before net income. Consider the following example. Discontinued operations are listed separately on the income statement because it s important that investors can clearly distinguish the profits and cash flows from continuing operations from those.

If the conditions under gaap are met then the business must show the result of the discontinued operations in a separate section in the income statement.