Dynamic Divestures: A Codification Exercise on the Reporting of Discontinued Operations

In: Issues in accounting education, Band 33, Heft 1, S. 53-63

Abstract

ABSTRACTThis instructional case discusses a hypothetical scenario of a global conglomerate that has recently divested operations for three different subsidiaries. Students are required to determine the appropriate general financial statement presentation of the different subsidiaries in the consolidated income statement of the conglomerate. The case expands students' understanding of the accounting for discontinued operations, a financial accounting topic that has recently changed, and develops their research skills within the Financial Accounting Standards Board's (FASB) Accounting Standards Codification®. Furthermore, the case allows students to practice applying judgment to unique and complex situations within the accounting environment.