13 - • Reported after continuing operations net of income...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Continuing Operations Income from day-to-day normal business activities Includes: Revenues and operating expenses Gains and losses Income tax expense Can help predict future annual income Discontinued Operations Company sells a segment of the business Identifiable part of business Reported beneath income from continuing operations Net of income taxes Not considered in predictions of future earnings Extraordinary Items Gains and losses that are both infrequent and unusual Include losses from natural disasters and expropriation of assets by foreign governments Do NOT include gains or losses from lawsuits, restructuring or sale of plant assets
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: • Reported after continuing operations net of income taxes Cumulative Effect of Change in Accounting Method • Change from one accounting method to another FIFO to LIFO Straight-line depreciation to double-declining balance • Makes difficult to compare year-to-year statements • Reported in special section usually after extraordinary items Comprehensive Income • Change in stockholders’ equity from all non-owner transactions • Net Income plus: Unrealized gains (losses) on available-for-sale investments Foreign currency translation adjustments • Not included in net income or EPS calculations...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern