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ACC 300 · Meeting 7 · Tue 9/22

Discontinued operations

45 slides · Unit 2 · Optional Kieso: Chapter 3 and Chapter 17 · Meeting overview

Lecture

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  1. Slide 1. Discontinued operations
  2. Slide 2. Classify disposals and unusual items
  3. Slide 3. Present discontinued operations
  4. Slide 4. Why separate only some disposals?
  5. Slide 5. Does the disposal qualify?
  6. Slide 6. Three discontinued-operation conditions
  7. Slide 7. Identify a distinguishable component
  8. Slide 8. Evidence builds toward a component conclusion
  9. Slide 9. Determine the component's disposal status
  10. Slide 10. Planned sale: all six criteria
  11. Slide 11. Assess the strategic shift and its effect
  12. Slide 12. Which fact best supports a component conclusion?
  13. Slide 13. The records distinguish operations and cash flows
  14. Slide 14. Classify the hardware-line sale
  15. Slide 15. Conditions 1 and 2 are satisfied
  16. Slide 16. Condition 3 is satisfied
  17. Slide 17. Where does the showroom result belong?
  18. Slide 18. The showroom remains in continuing operations
  19. Slide 19. Where does the amount appear?
  20. Slide 20. Combine operating and disposal results
  21. Slide 21. Keep tax with the category that generated it
  22. Slide 22. Measure the hardware-line result
  23. Slide 23. Calculate Granite Harbor's net loss
  24. Slide 24. What amount appears in discontinued operations?
  25. Slide 25. The net loss is $450,000
  26. Slide 26. Income statement placement
  27. Slide 27. Recast the 2024 presentation
  28. Slide 28. Comparative income statement
  29. Slide 29. Held-for-sale measurement and depreciation
  30. Slide 30. Evaluate the controller's proposal
  31. Slide 31. No initial write-up above carrying amount
  32. Slide 32. Show held-for-sale balances in the full statement
  33. Slide 33. Keep each period's measurement
  34. Slide 34. Reading the statements and notes together
  35. Slide 35. Information the note may add
  36. Slide 36. How should 2025 be presented?
  37. Slide 37. Separate 2025 lines; no 2026 write-down
  38. Slide 38. Unusual or infrequent items
  39. Slide 39. Unusual nature and infrequency
  40. Slide 40. Presentation of unusual or infrequent items
  41. Slide 41. QVC supplies the event detail in a note
  42. Slide 42. What does QVC's note demonstrate?
  43. Slide 43. The note makes the continuing item visible
  44. Slide 44. Discontinued operations and unusual items
  45. Slide 45. Apply the revenue model

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Contents

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Opening and objectives Slides 1–4

  1. 1 Discontinued operations
  2. 2 Classify disposals and unusual items
  3. 3 Present discontinued operations
  4. 4 Why separate only some disposals?

The three classification conditions Slides 5–13

  1. 5 Does the disposal qualify?
  2. 6 Three discontinued-operation conditions
  3. 7 Identify a distinguishable component
  4. 8 Evidence builds toward a component conclusion
  5. 9 Determine the component's disposal status
  6. 10 Planned sale: all six criteria
  7. 11 Assess the strategic shift and its effect
  8. 12 Which fact best supports a component conclusion?
  9. 13 The records distinguish operations and cash flows

Classify the Granite Harbor disposal Slides 14–18

  1. 14 Classify the hardware-line sale
  2. 15 Conditions 1 and 2 are satisfied
  3. 16 Condition 3 is satisfied
  4. 17 Where does the showroom result belong?
  5. 18 The showroom remains in continuing operations

Measure the discontinued operation Slides 19–25

  1. 19 Where does the amount appear?
  2. 20 Combine operating and disposal results
  3. 21 Keep tax with the category that generated it
  4. 22 Measure the hardware-line result
  5. 23 Calculate Granite Harbor's net loss
  6. 24 What amount appears in discontinued operations?
  7. 25 The net loss is $450,000

Present the financial-statement effects Slides 26–37

  1. 26 Income statement placement
  2. 27 Recast the 2024 presentation
  3. 28 Comparative income statement
  4. 29 Held-for-sale measurement and depreciation
  5. 30 Evaluate the controller's proposal
  6. 31 No initial write-up above carrying amount
  7. 32 Show held-for-sale balances in the full statement
  8. 33 Keep each period's measurement
  9. 34 Reading the statements and notes together
  10. 35 Information the note may add
  11. 36 How should 2025 be presented?
  12. 37 Separate 2025 lines; no 2026 write-down

Present unusual or infrequent items Slides 38–44

  1. 38 Unusual or infrequent items
  2. 39 Unusual nature and infrequency
  3. 40 Presentation of unusual or infrequent items
  4. 41 QVC supplies the event detail in a note
  5. 42 What does QVC's note demonstrate?
  6. 43 The note makes the continuing item visible
  7. 44 Discontinued operations and unusual items

Next class Slides 45–45

  1. 45 Apply the revenue model