IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

A discontinued operation is a component of an entity that either has been disposed of or is classified as held for sale and: (a) represents a separate major line of business or geographical area of operations; (b) is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or (c) is a subsidiary acquired exclusively with a view to re-sale. A disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction.

An entity shall disclose the following for Discontinued Operations:

(a) A single amount comprising the total of: (i) the post-tax profit or loss of discontinued operations; and (ii) the post-tax gain or loss recognised on the measurement to fair value less costs to sell or on the disposal of the assets or disposal group(s) constituting the discontinued operation. (b) An analysis of the single amount in (a) into; (i) the revenue, expenses and pre-tax profit or loss of discontinued operations; (ii) the gain or loss recognised on the measurement to fair value less costs to sell or on the disposal of the assets or disposal group(s) constituting the discontinued operation; and (iii) the related income tax expense. (c) The amount of income from continuing operations and from discontinued operations attributable to owners of the parent. The analysis can be disclosed in the notes to the financial statements. These disclosures are not required for disposal group.

 

 

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