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Chapter 3 — Accounting Considerations Related to a Carve-Out Entity’s Statement of Comprehensive Income

3.1 Expenses Clearly Applicable

3.1 Expenses Clearly Applicable

The identification and allocation of expenses directly related to the carve-out entity’s revenue-producing activities (e.g., cost of goods sold) may be straightforward and readily available from the entity’s historical records through specific identification with the related revenues.