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.
Back To All Questions
You might also be interested in... 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:
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:
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:
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: