In the Current Year, a Firm Has Decided to Dispose

question 95

Multiple Choice

In the current year, a firm has decided to dispose of a segment. Disposal will take place in the next (subsequent) year. Use the following symbols to answer this question on reporting for discontinued operations: P = income on discontinued segment from beginning of current year to date of disposal decision
Q = income on discontinued segment from date of disposal decision to end of current year
R = estimated loss of discontinued segment sale of assets in subsequent year to date of disposal of segment
When determining the amount to disclose as the gain or loss on disposal of the segment for the current period, which of the following should be considered:

• A) P, Q and R
• B) P and Q only
• C) Q and R only
• D) None of P, Q or R

---

Definitions:

British Columbia

A province located on the west coast of Canada, known for its natural beauty, including mountains, forests, and the Pacific coastline.

International Labour Organization

A United Nations agency that sets international labor standards and promotes social protection and work opportunities for all.

Free Trade

A policy to eliminate barriers to the exchange of goods and services between countries, aiming to encourage international trade.

Expatriates

Employees who are temporarily assigned to work in a country other than their home country by their employer.