What is the definition of a component under US GAAP for discontinued operations?
A component that is deemed discontinued describe components of an organization or a group of components. Generally, these components will be consistent of reportable segments, operating segments, reporting units, or subsidiaries.
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What is included in the discontinued operations gain or loss on the income statement?
For an item to be classified as a discontinued operation, the event needs must meet the definition of a strategic shift. When a component is designated as discontinued, there are three different factors that must be included in the overall net loss on the discontinued entity:
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What is an example of a strategic shift in relation to a component that has been discontinued?
In order for a component to qualify as a discontinued operation, the component has to represent a “strategic shift”. Examples of strategic shifts are outlined below: