Question

What three items are included in the (normally) loss from discontinued operations?

Answer 1

The three items included in the loss from discontinued operations are assets and liabilities, impairment losses, and operating results.

Step-by-step explanation:

The three items that are included in the loss from discontinued operations are:

1. Assets and Liabilities: When a business decides to discontinue a specific line of business, any assets and liabilities associated with that line are classified as held for sale. These include things like inventory, equipment, and debts.
2. Impairment Losses: If the assets held for sale have a fair value less than their carrying amount, impairment losses are recognized. These losses reflect the decrease in value of the assets due to the discontinuation of the business line.
3. Operating Results: The operating results from the discontinued operations are reported separately from the continuing operations. These results include revenues, expenses, gains, and losses directly related to the discontinued business line.