Discontinued Operations

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
When we have to draft an Income Statement featuring discontinued operations do we just have to split out the profit figure at the beginning between continued operations, aquisitions and discontinued opearations.

Do we have to draw up a seperate table??????

Help!!

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Discontinued Operations

    Hi
    In an income statement you deduct the revenue from discountinue operation from the revenue of the continue operation and the result is what goes in the income statement as revenue. You do the same for sales, cost of sales, admin costs and distribution costs. Then you proceed as usual the calculation of the profit from continue operation to which you add or (substract) the profit/ (loss) from discontinue operation and you get your profit for the year.
    I hope this answer your question.

    Thanks

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