[Anonymous]

So I am studying for FAR again. :/ I am confused about discontinued operations and extraordinary gain/loss. I know that they are reported net of income tax, does that mean they are reported before net income or after net income? They are reported after income from continuing operations for sureee..

I know for sure that OCI is reported after net income.

[Anonymous]

The two items that you note ars components of net income, hence they are before. It goes:

Net income before taxes

taxes

Net income after taxes/income form continuing operations

Discontinued operations (net of tax)

Net income before extraordinary items

Extraordinary items

Net income

Hope this helps

[Anonymous]

Thanks bcmeyer32. So why are there so many net income figuress – usually only one net income figure is reported. Here is how i understand the income stmt strucute

Income from contiuing operations(after taxes)

Discontiued operations( net of tax effect)

extra ordinary item = (net of tax effect)

Then, Net Incomeee

and OCI Comprehensive income is derived after making adjustments to Net Income?

Thanks for your help again

[Author]

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