Operations of the reporting entity that are sold or terminated and that satisfy certain criteria (FRS 3): the sale or termination is completed either in the period or before the earlier of three months after the commencement of the subsequent period and the date on which the financial statements are approved if a termination, the former activities have ceased permanently the sale or termination has a material effect on the nature and focus of the reporting entity's operations, and represents a material reduction in its operating facilities resulting from its withdrawal from a particular market (whether class of business or geographical) or from a material reduction in turnover in the reporting entity's continuing markets the assets, liabilities, results of operations and activities are clearly distinguishable physically, operationally and for financial reporting purposes.

Certain businesses we have sold or committed to sell within the next year and which will no longer be part of our ongoing operations. The net earnings, assets and liabilities and cash flows of such businesses are separately classified on our Statement of Earnings, Statement of Financial Position and Statement of Cash Flows, respectively for all periods presented.

Operations of an entire division, subsidiary, or segment of a company where a formal plan exists to eliminate it from the company. (It involves more than pruning a product line of certain models of products.) The revenues, gains, expenses, and losses pertaining to the business segment are removed from the company's continuing operations and are reported separately on the company's income statement. Discontinued operations amounts appear near the end of the income statement but preceding extraordinary items and the cumulative effect of a change in an accounting principle. It will be shown on a per share basis, if the company's stock is publicly traded. To Top