Discontinued Operations

Discontinued operations are a section of a company's income statement that reports the results of a business segment that has been sold, closed, or otherwise disposed of. The discontinued operations section is typically presented after the company's continuing operations section.

The discontinued operations section includes the following items:

* The income or loss from discontinued operations
* The gain or loss on the disposal of a discontinued operation
* The net assets of a discontinued operation

The income or loss from discontinued operations is calculated by taking the revenue from the discontinued operation and subtracting the expenses from the discontinued operation. The gain or loss on the disposal of a discontinued operation is calculated by taking the proceeds from the sale of the discontinued operation and subtracting the book value of the discontinued operation. The net assets of a discontinued operation are the assets of the discontinued operation minus the liabilities of the discontinued operation.

The discontinued operations section is important because it provides investors with information about the impact of the disposal of a discontinued operation on the company's overall financial results. The discontinued operations section can also help investors to compare the company's financial results to those of other companies that have not disposed of any discontinued operations.

Here are some additional points to keep in mind about discontinued operations:

* The discontinued operations section is typically presented on a net-of-tax basis. This means that the income or loss from discontinued operations is presented after taxes have been deducted.
* The discontinued operations section is typically presented on a before-tax basis. This means that the income or loss from discontinued operations is presented before taxes have been deducted.
* The discontinued operations section is typically presented on a historical basis. This means that the income or loss from discontinued operations is presented for the period in which the discontinued operation was sold, closed, or otherwise disposed of.

Discontinued operations can have a significant impact on a company's financial results. Therefore, it is important for investors to understand how discontinued operations are reported in a company's financial statements.