When calculating funds from operations, how should gains and losses on the disposal of non-current assets be treated in relation to net profit?

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Included as an addition for gains and subtracted for lossesAdded to net profit for both gains and lossesSubtracted from net profit for gains and added for lossesSubtracted from net profit for both gains and lossesNo adjustment is required

Explanation

In preparing funds from operations, any profit from selling non-current assets is deducted from net profit because it is a non-operating gain, while any loss is added back to net profit since it is a non-operating expense. This adjustment ensures that funds from operations reflect only the operating performance.