A company that reports a discontinued operation or an extraordinary item must also report earnings per share for each of these line items.

Question

Quizplus · Accepted Answer

When a company reports a discontinued operation or an extraordinary item in their financial statements, they are required to report earnings per share for each of these line items in order to provide a more accurate picture of the company's earnings and financial health to its stakeholders. This information helps investors, analysts, and other interested parties make informed decisions about buying, selling, or holding the company's stock.

A Company That Reports a Discontinued Operation or an Extraordinary