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Subject Topic: Income from continuing operations (Topic Closed Topic Closed) Post ReplyPost New Topic
  
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lionheart
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Joined: 07 Apr 2009
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Posted: 07 Apr 2009 at 15:05 | IP Logged  

I thought that Income from continuing operations was shown on the I/S gross of tax.

However, in a question from Becker, it asked what the Income from continuing operations would be for the Multiple step I/S would be and the answer was net of tax.

Could someone explain why this is so?

Thanks.
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divyagovil1
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Joined: 30 Jan 2009
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Posted: 07 Apr 2009 at 15:15 | IP Logged  

Refer "pass key" at the bottom of the page on F1-16.

Income from continuing operations is shown net of tax. All the line items which add up to income from continuing operations are shown gross.

All line items - gross

Total - Incomefrom continuing operations - gross

less. taxes

Income from continuing operations - net

All line items below income from continuing operations such as discontinued operations, extraordinary items... are shown net of tax

 



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Passed using Becker Review :
FAR - 04/11/09 - 94
BEC - 05/30/09 - 86
REG - 08/29/09 - 95
AUD - 11/21/09 - 92
Ethics - 2011
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