Final answer:
To report operations of a component in discontinued operations, additional conditions include representing a strategic shift with a major effect on operations and financial results, elimination of operations and cash flows from ongoing entity operations, and no significant involvement after the disposal transaction.
Step-by-step explanation:
When reporting the results of operations of a component in discontinued operations, the component must have been disposed of or classified as held for sale. However, there are additional conditions that must be met for a component's operations to be considered discontinued. First, the component must represent a strategic shift that has a major effect on the company's operations and financial results. This could include the disposal of a major geographical area, a major line of business, a significant organizational unit, etc. Second, the operations and cash flows of the component must have been (or will be) eliminated from the ongoing operations of the entity as a result of the disposal transaction. Lastly, the entity should not have significant involvement in the operations of the component after the disposal transaction.