As we learned in this chapter certain professional pronouncements require that some irregular items be highlighted in the financial statements. These items include Discontinued Operations, Extraordinary Items, Unusual Gains and Losses, Changed in Estimates, and Corrections of Errors. Search the internet for the financial statements of a company that has one of these item.
Enter the name of the company in the subject box of your post. Do not use a company that has already been discussed. Give us the details about the item you found and the transaction(s) that created it. Also provide the URL for the financial statements.
For example I found the financial statements for Harley-Davidson. Harley owned an Italian motorcycle company named MV Agusta. They decided to discontinue the operation of this company and sell it. In 2010 they reported a $113.1 million loss from discontinued operations primarily due to impairment charges related to a decrease in the fair value of MV Agusta. In 2011, the Company recognized a $51.0 million benefit on income from discontinued operations, driven by the reversal of tax amounts reserved in prior years related to the divestiture of the Company’s MV Agusta subsidiaries. The amounts had been reserved pending an agreement that was reached by the Company and the IRS on the tax treatment of the transaction in December 2011.