Reporting Tax Benefits Realized on Disposition of Investments in Certain Subsidiaries and Other Investees—an interpretation of APB Opinions No. 23 and 24
Summary
Because of divergent practices in reporting tax benefits realized on dispositions of certain investments, the FASB was asked to clarify the reporting of those benefits. This Interpretation requires tax benefits realized on disposition of investments in certain subsidiaries and other investees relating to a difference between the accounting and tax basis of the investment to be classified the same as the classification accorded the gain or loss on disposition of the investment (for example, as results of continuing operations, as extraordinary, or as disposal of a segment of a business).