| Para No. |
|
Issued:
August,
2001
|
| Reporting | |||||
| 41 | A component of an entity comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity. A component of an entity may be a reportable segment or an operating segment, a reporting unit, a subsidiary, or an asset group. | ||||
| 42 | The results of operations of a component of an entity that either has been disposed of or is classified as held for sale shall be reported in discontinued operations...if both of the following conditions are met: | ||||
| a. | The operations and cash flows of the component have been (or will be) eliminated from the ongoing operations of the entity as a result of the disposal transaction, and | ||||
| b. | The entity will not have any significant continuing involvement in the operations of the component after the disposal transaction. | ||||
| 43 | In a period in which a
component...has
been disposed of or is classified as held for sale, the income
statement
for current and prior periods...shall report the results of operations
of the component, including any (realized) gain or loss on disposal of
the assets
of the component, in discontinued operations. (Gains should not be
recognized until realized. In other words, do not anticipate a
gain before it is realized.) |
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| The result of operations...shall be reported...in the period(s) in which they occur. | |||||
| The results of
discontinued
operations, less applicable income taxes (benefit), shall be reported
as
a separate component of income before extraordinary items and the cumulative
effect of accounting changes. (Eliminated by
FAS 154) |
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| Income from continuing operations before taxes | $XXXX | ||||
| Income taxes | XXX | ||||
| Income from continuing operations | $XXXX | ||||
| Discontinued Operations (Note X) | |||||
| Income (Loss) from operations of discontinued segment X (including loss on disposal of $XXX) | (XXXX) | ||||
| Income tax benefit | XXXX | ||||
| Income (Loss) on discontinued operations | (XXXX) | ||||
| Net
Income (loss) |
$XXXX | ||||
| A gain or loss recognized on the disposal shall be disclosed either on the face of the income statement or in the notes to the financial statements. | |||||
| 44 | Adjustments to amounts
previously
reported in discontinued operations that are directly related to the
disposal
of a component of an entity in a prior period shall be classified
separately
in the current period in discontinued operations. The nature and amount of such adjustments shall be disclosed. Adjustments arise primarily from the resolution of contingencies . . .such as the resolution of the purchase price. . . . |
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