ACC 280 Week 4 - DQ#3 Disc Ops & Extraordinary Items
Why is it important to report discontinued operations or extraordinary items separately from income from continuing operations?
Is this method of reporting allowed? What concerns does this type of reporting create? Does the average investor understand the difference? In what way(s) might the information be presented to clarify meaning for investors?
This reporting is allowed but there are concerns of misreporting like placing items in areas that are discontinued but actually are not which skews the reports ... To clarify the meaning between them it would help to explain what they are, for example discontinued operations ... Knowing what they are will help to explain why they are reported.