Income Statement Example With Discontinued Operations

Income tax expense provision for tax.

Income statement example with discontinued operations. Income statement and discontinued operations duration. The product is part of a larger product group for which cash flows are tracked. Income from operations of segment a net of tax 0 65 200 150 32 5. Therefore the after tax loss from discontinued operations is 70 000 100 000 30 000.

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. Income from disposal of segment a net of tax 0 65 120 100 13. Income from continuing operations. Gain loss from discontinued operations.

This section holds incomes or expenses from entity s discontinued operations. This is required to be a single line item net of tax as per the instructions of ifrs 5. Below is an example of a single step income statement containing discontinued operations. Such presentation help users assess financial performance better.

Net effect of income from discontinued operations. Viacom and simon schuster in the 1990s viacom owner of mtv vh1 and nickelodeon purchased paramount studios. For example if the loss from discontinued operations is 100 000 and your tax rate is 30 percent the applicable tax benefit is 30 000 100 000 x 0 30. Income statement discontinued operations example.

1 armadillo industries plans to cancel one of its pressurized container products due to a lack of sales. If this were a corporation income tax expenses would be part of the income statement and the gain on discontinued operations would be reduced by the income tax expense associated with the gain. For example in 2012 pfizer pfe recorded income of 297 million and gains on sale of 4 8 billion from discontinued operations primarily their nutrition business. Ifrs 5 non current assets held for sale and discontinued operations require entity to report any gains or losses from discontinued operations as a single post tax net of tax line item in the income statement after computation of profit from continuing operations.

Income from discontinued operations. Multi step income statement with discontinued operation duration. Subtotal here is referred as profit after tax profit from continuing operations.