Final answer:
Extremely large write-downs or write-offs are reported in continuing operations, gross of tax, when a company reduces the value of its assets significantly. This is done before deducting any tax expenses.
Step-by-step explanation:
In accounting, write-downs or write-offs occur when a company reduces the value of its assets on its financial statements. These reductions can be caused by factors like obsolescence, damage, or changes in market conditions. When extremely large write-downs or write-offs are reported in continuing operations, gross of tax, it means that the company is recognizing a significant loss in the value of its assets which is directly impacting its ongoing operations. This information is reported before any tax expenses are deducted, giving a gross figure.