Discontinued Operations in Accounting, defined and explained

[@MyFinancialFocus]

Discontinued operations is an interesting topic! It’s good to know which revenue streams will be repeated and which are a one time thing when analyzing the financial statements of a business.

[@srinivasankumar4702]

What about held for sale assets or component?

[@MyFinancialFocus]

Those are investments.

[@alexmagallanes6338]

what about continued operations? is it not a thing? There is like no video about it. would you be able to make one regarding it

[@omaro_o7151]

Everything else is continued operations. Discontinued operations is just an irregular item. kzbin.info/www/bejne/gqephmZ5ftGUr7Msi=Iji31CZoCwUaLr92

[@theclaybeartravels3596]

Income from continued operations is your income after taxes that is reported just before discontinued operations.

[@seanogrady2629]

Why do you have to report a loss from discontinued operations net of tax? I thought you only pay taxes on gains?

[@ashleyjohnson5283]

If I’m not mistaken, reporting loss from discontinued operations wouldn’t be an tax expense but most likely a tax benefit

[@arunnk786]

@@ashleyjohnson5283 But how can we treat it as tax benefits if we can't carryforward losses of operations from discontinued business?

[@rue8682]

Thanks

[@heismuste]

I didn't understand anything

[@alexanderforbrigd7772]

danke

[@Edspira]

😀

[@lilynote2016]

What happens if we discontinue it but don't sell it in that period? What do we put for the amount if we don't sell it?

[@theanabolicitalian2285]

I’m sure this is a bit late now but you’d record the income/loss for the year/reporting period + hypothetical gain or loss of the book value of the discontinued assets minus their fair value (net of estimated selling costs related to selling those assets)

[@lilynote2016]

@@theanabolicitalian2285 Oh, alright! Thank you! I learned a bit about it but we did not cover it extensively in depth so this adds to my understanding. Thank you!

[@Dino-in5sg]

@@theanabolicitalian2285 If the company sells it they just record the gain or loss for the year/ reporting period and the remeasurement?

[@theanabolicitalian2285]

@@Dino-in5sg if it sells in the period then you would probably record the gain/loss on the sale and make an adjustment if an impairment was originally recorded earlier. I’m not sure however so hopefully someone can clarify that for me.

[@dribe9588]

Russian dolls 🤣

[@gissinginvest1968]

danke