Which of the following is NOT a criterion for classifying a component as discontinued operations?

A component is classified as discontinued operations under specific criteria established by accounting standards. The correct answer identifies a factor that does not contribute to classifying a component as discontinued operations.

A critical aspect of this classification is that the operation must represent a separate major line of business or a significant part of an entity’s operations. This implies that if a component represents only a minor line of business, it does not meet the thresholds typically required for discontinued operations. The focus on major lines of business ensures that stakeholders are sufficiently informed about significant changes in an entity's overall operational viability and strategic direction.

Additionally, a component can be part of a coordinated plan to dispose of it, which is crucial for classifying operations as discontinued. If it was acquired with the intention of resale, that also aligns with the criteria for classification. Therefore, components that are major lines of business or part of significant disposal plans directly satisfy the requirements for being considered discontinued operations. The classification helps to provide clarity to users of financial statements about which components are no longer part of an entity's future operations.