Correction
Allocate income tax expense or benefit among continuing operations and the other statement categories that contain the related pretax items. The category amounts must reconcile to total tax for the period.
For example, a supplied tax benefit related to a discontinued-operation loss is included in the net-of-tax discontinued-operation result. It does not belong in the continuing-operations tax line merely because continuing operations appears first on the income statement.
Where to watch
When this mistake may appear
- Total tax expense is known.
Check your work
Your work may contain this mistake if:
- Assign the full provision to the continuing-operations tax line.