ECON 3A Lecture Notes - Lecture 15: Income Statement, Financial Statement Analysis, Comprehensive Income
Document Summary
For users to know what is going to happen reason to show what has happened for user to dissect and interpret future. Most recurring item least recurring item (discontinued operations no longer recurs) Taxes are recurring if create any income. Net: net of all costs and income. Discontinued operations (net of tax): the disposal of a significant segment of a business. The elimination of a major class of customers or an entire activity. Show the line of tax for discontinued operation: intraperiod tax allocation. D = (1 tax rate) * gross. Tax effect of a loss? (tax benefit) When evaluating a company, it generally makes sense to eliminate discontinued operations in estimating future sustainable income. Most revenues, expenses, gains, and losses recognized during the period are included. Includes all changes in s/e during a period except those resulting from investments by.