Question : Accounting for Discontinued OP sales, net, allocated, business, someone

Spongebob

Can someone clarify this for me. If a whole business segment is sold the sales from proceeds will be posted net of tax as discontinued operations. Are the gains or losses not from sale but from the operating bussiness that was sold allocated to discontinued operations or pre tax continuing operations? Thanks in advance.

nixie24

Once the business sale has been conducted the gain or loss from this sale flows through continuing opertaions and the proceeds goes to discontinued operations. The only item i am unsure of is my third statement.

manchester88

Once it’s announced or determined that the business unit will be discontinued, I think anything related to that business unit from then until it’s officially discountined are all separated from anything that has to do with continuing operations.
No?

edgeon

I am stating three things here. Sorry for any confusion.
1. Sales from bussiness unit allocated to discontinued operations
2. Gains or losses from the sale of business unit (Original Cost  Final Cost) Allocation to continuing operations.
3. During the year the business that was sold off suffered a sizable loss from operations. Would this loss be allocated with discontinued operations or pretax?
I thought i read somewhere that it would be part of discontinued. Thanks for the responses though.

hinsafdar

“Are the gains or losses not from sale but from the operating bussiness that was sold allocated to discontinued operations or pre tax continuing operations?”
cant understand what you are trying to say. Anything in operations should logically come to pre tax continuing operations.