Exit or Disposal Activities and discontined Operations

Question 1

On what date should the company record the cost of the termination benefit?

Answer 1

Requires the one time communication costs to be measured at the communication date?

Question 2

How should the gain/loss on sale of a discontinued operation be treated? Also, how should operating income/loss be treated on sale of operation?

Answer 2

(1. )An anticipated loss on sale should be recognized by writing the component down to FMV. An anticipated gain on sale of the component should not be recognized until the day of the sale.
(2. ) the losses from a discontinued segment that qualifies as a component are reported in the period they occur. Note: disposal is for Feb and period is for 3 months ending march then include in Jan results as well.

Notes
(1.) When an entity is first listed as held for sale, the gain/loss associated with sale should be recorded, note only record actual gain/loss not estimated. As well as any operating income/loss