As part of their normal course of business, companies sometimes sell off entire divisions or segments. The accounting treatment for such sales is composed of two components and a reporting format.

Required:

a. Describe the accounting treatment and reporting format used for such sales.
b. Discuss why such sales are separated from other parts of the income statement.

Question

As part of their normal course of business, companies sometimes sell off entire divisions or segments. The accounting treatment for such sales is composed of two components and a reporting format.

Required:

a.     Describe the accounting treatment and reporting format used for such sales.
b.     Discuss why such sales are separated from other parts of the income statement.

Quizplus · Accepted Answer

The Answer of As part of their normal course of business, companies sometimes sell off entire divisions or segments. The accounting treatment for such sales is composed of two components and a reporting format.

Required:

a.     Describe the accounting treatment and reporting format used for such sales.
b.     Discuss why such sales are separated from other parts of the income statement.

As Part of Their Normal Course of Business, Companies Sometimes