What we see is a discontinued operations loss of 1 32 million which is reflected as a separate line item. A discontinued operation is a separate major business division or geographical operation that the company has disposed of or is holding for sale.
Keep in mind it s reported net of tax.
Income from discontinued operations income statement. Ned instructs accounting to discontinue operations for this channel. Disclose the results from discontinued operations on the income statement or in accompanying notes. The total gain or loss from the discontinued operations is thus reported followed by the relevant income taxes.
Net income from discontinued operations the amount shown on the income statement under discontinued operations is the profit or loss made during the current period from business lines or units that will not be a part of the company in the future. 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. 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.
This means that any income or expenses related to the channel s operation will now fall under discontinued operations on the income statement the one that will be generated for the same quarter he sold the station in. 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. This tax is often a future tax benefit because discontinued operations often incur.
The results of discontinued operations are presented as a single amount on the face of income statement including the after tax gain or loss of discontinued operations as well as the after tax profit or loss recognized either on quantification to fair value minus the costs to sell or on disposing the discontinued operations. A company s income statement summarizes the revenues expenses and profits for an accounting period. It s a separate line item as discussed before we report our true bottom line the net income of 21 million.
Let s now review the sample income statement excerpt reflect on this slide. 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.