Why earnings from discontinuted operations are shown net of tax in an income statement? Thanks koch
hey hii I guess thats coz when u wanna finally arrive at a figure it should be a net of tax, net income from operating activities is already calculated net of taxes , hence this is also done in the same way. I hope I answered ur question. Regards swetha
It is to clearly distinguish between recurring and non recurring items. Most Equity and Credit Analysts are mostly concerned with recurring items to arrive at a run rate operating income number and base their projections off that number.
I understand the need for reporting Net income from continuing operations. The word “Net of tax” is what confused me. Thanks a lot… Thanks Swetha!
Why does income from discontinued operations come out of the blue just before net income is calculated? So it’s not even part of Net Revenue?