F1M5 Income Statement and Discontinued Operations

Question 1

items reported under discontinued operations includes

Answer 1

impairment loss, G&L of operation and disposal

Question 2

under GAAP, a component can refer to

Answer 2

1. operation seg 2. reportable seg 3. reporting unit 4. subsidiary 5. asset group

Question 3

‘held for sale’ indicators are

Answer 3

1. a plan for sale 2. avaluable for immediate sale, 3. active program to locate buyers 4. the sale is probable 5. marketed 6. less likely to repeal the disposal

Question 4

what is a “strategic shift” in accounting perspective

Answer 4

change in geographic location, equity investment methods, major line of business

Question 5

when a component will be reported as discontinued operation?

Answer 5

1. has been dispose of 2 classified as held for sale

Question 6

depreciation and amortization of assets will_ once management decide to dispose a component.

Answer 6

stop