Which of the following is a required disclosure in the income statement when reporting the sale of a component of the business?
A) The gain or loss on sale should be reported as a component of other comprehensive income
B) Both the results of operations of the discontinued component and also the gain or loss on the sale should be reported as components of other comprehensive income.
C) Earnings per share from both income from continuing operations and net income should be disclosed on the face of the income statement.
D) Revenue and expenses applicable to the discontinued operations should be disclosed in the income statement.

Question

Quizplus · Accepted Answer

Earnings per share (EPS) from both income from continuing operations and net income are required to be disclosed on the face of the income statement when reporting the sale of a component of the business. This provides users of financial statements with a clear understanding of the impact of discontinued operations on the company's profitability.

Which of the Following Is a Required Disclosure in the Income