U.S.GAAP and IFRS require separate income statement display of income from continuing operations and _____earnings that will not continue because the firm either sold, or made a decision to sell, a portion of its business).Such a requirement aids users of the income statement in predicting future earnings.
A)income from discontinued operations
B)extraordinary items
C)changes in accounting principles
D)sale of individual assets
E)none of the above

Question

Quizplus · Accepted Answer

Both U.S.GAAP and IFRS require the separate income statement display of income from continuing operations and income from discontinued operations. This aids users of the income statement in predicting future earnings by allowing them to exclude the impact of one-time events, such as selling off a portion of the business. The other options listed are not required to be separately displayed on the income statement.

USGAAP and IFRS Require Separate Income Statement Display of Income