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This is an extract from the June/March 2017 question:
On 1 April 20X4, Aspect Co decided to focus on its core business and so disposed of a non-core division. The disposal generated a loss of $1·5m which is included within operating expenses.
The question is why do we need to deduct this loss on disposal of non-core division from operating expenses of Aspect Co?
Thank you in advance!
If it is a discontinued operation then it will need to be disclosed separately and therefore removed from the operating expenses.