Business, Legal & Accounting Glossary
Stopped, no longer in effect. In the context of finance, income from discontinued operations is usually a line item in the income statement, and is usually not considered when making projections of a company’s growth prospects.
Discontinued in a financial context is usually associated with discontinued operations. When companies dispose of operations that can be identified as a specific, separate segment of their business, these activities are considered discontinued operations. GAAP provides for separate disclosure of discontinued operations, which warns investors that these activities will no longer be part of the company. The accounting rules for discontinued operations are somewhat complex. But put simply, the discontinued operations section — which on the income statement appears before any extraordinary items and the effect of accounting changes — has two components. First, there is the income (or loss) from discontinued operations for that fiscal period. Second, there is the overall gain (or loss) recorded on the disposal of the discontinued operations. Additional information about discontinued operations also appears in the footnotes to the statements.
You need to make sure that you know what to do with any resources you have left after you discontinued the product.
I could not find my favorite type of ice cream anywhere because the company discontinued it and had no plans to make more.
The company no longer saw a good prediction of profit from one of their formerly best divisions and discontinued it hastily, which they later regretted as the market bounced back.
EBIT
few
net income from discontinued operations
discontinued operations
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This glossary post was last updated: 29th October, 2021 | 0 Views.