Hi all,
If a manufacturing company reports a loss on the sale of a business segment on its income statement, is this item should be included in operating expenses?
Nope: discontinued operations.
No, I think it is “Unusual or infrequent items”. In the notes, p63. Examples of unusual or infrrequent items include gains or losses from the sale of assets or part of a business.
My error. (Just flew from Vancouver to Munich, so I’m a bit low on sleep.)
The gain or loss is unusual or infrequent. Any income (profit or loss) generated during the year before the operation was sold is discontinued operations.
Ok. Then is it operation expense? The answer for question is yes.