#5 PFRS 5

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FINANCIAL ACCOUNTING AND REPORTING REPORTING

DISCONTINUED OPERATIONS Key Definitions Discontinued Discontinued Operation Operation - Is a component of an entity that 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 co-ordinated 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 resale.

Comp Compon onen entt of an Enti Entity ty – Opera Operatio tions ns and and cash cash flows flows that that can can be clearl clearly y distin distingu guish ished ed,, operationally and for financial reporting purposes, from the rest of the entity. Presentation of Discontinued Operations As a singe amount on t!e face of t!e income statement comprising t!e tota of"

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a. he he sum sum of of the the post#ta$ profit or oss of oss  of the discontinued operation b. he post-t post-tax ax gain gain or loss recogni! recogni!ed ed on the measurement to fair %aue ess cost to se or on the the disposa of t!e assets or disposa disposall group"s# group"s# constitu constituting ting the disconti discontinue nued d operation. In t!e notes or on t!e face of t!e income statements –  $n analysis of the singe amount as amount  as presented above into%

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a. he revenue, revenue, expenses expenses and and pre-tax pre-tax profit or loss of discontinued discontinued operations& operations& b. he relate related d incom income e tax tax expe expense nse c. he gain gain or loss recogn recogni!ed i!ed on the the measurem measurement ent to fair fair value value less costs costs to sell or on the the disposal of the assets constituting the discontinued operation d. he relate related d income income tax tax benef benefit it in case case of of loss. loss. Cas! fo& statement presentation # he net cash flows attributable to the operating, investing, and financing activities of a discontinued operation shall be separately presented on the face of the statement of cash flows or disclosed in the notes.

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NONCURRENT ASSETS 'E(D )OR SA(E SCOPE •

'lassification and presentation requirements apply to all non-current assets and disposal groups "as a whole#

RE*UISITE TO +E 'E(D )OR SA(E" 'arrying value of the asset is to be recovered principally through a sale transaction. he asset is available for immediate sale and sale is highly probable. • •

'I,'(- PRO+A+(E .EANS" •

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he appropriate level of management must be committed to a plan to sell the asset "or  disposal group#  $n active program to locate a buyer buyer and complete the plan must have been initiated initiated he asset asset "or disposa disposall grou group# p# must must be activ actively ely mar(ete mar(eted d for for sale sale at a price price that that is reasonable in relation to its current fair value. he sale should be expected to qualify for recognition recognition as a completed sale within one year  from the date of classification 10/16-9

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 $ctions required to complete the plan should indicate that it is unli(ely that significant significant changes to the plan will be made or that the plan will be withdrawn

NONCURRE NONCURRENT NT ASSET ASSETS S E/C(USI E/C(USI0E( 0E(- AC*UIR AC*UIRED ED 1IT' A 0IE1 TO ITS SU+SE* SU+SE*UENT UENT DISPOSA( •

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'lassify the non-current asset "or disposal group# as held for sale at the acquisition date only if the one-year requirement in is met, and It is highly probable that the other requisites will be met within a short period following the acquisition ") months#

NCA 'E(D )OR SA(E RE*UIRE.ENTS .ET A)TER T'E END O) T'E REPORTIN, PERIOD •

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 $n entity shall not classify a non-current asset "or disposal group# group# as held for sale in those financial statements when issued. *hen those criteria are met after the reporting period but before the authori!ation of the financial statements for issue, the entity shall ma(e appropriate disclosures

NONCURRENT ASSETS TO +E A+ANDONED •

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 $n entity shall not classify classify as held for sale a non-current non-current asset "or disposal group# group# that is to be abandoned. his is because its carrying amount will be recovered principally through continuing use.  $n entity shall not account for a non-current non-current asset that has been temporarily ta(en out of  use as if it had been abandoned.

.EASURE.ENT NCA 'E(D )OR SA(E OR DISPOSA( ,ROUP • •

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+ower of its carrying amount and fair value less costs to sell. *hen the sale is expected to occur beyond one year, the entity shall measure the costs to sell at their present value. ains for any subsequent increase increase in fair value less costs to sell of an asset is recogni!ed, but not in excess of the cumulative impairment loss that has been recogni!ed.  $n entity shall not depreciate "or amorti!e# a non-current non-current asset while it is classified as held for sale or while it is part of a disposal group classified as held for sale.

C'AN,E IN C(ASSI)ICATION •

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easured at the lower of% a# Its carry carrying ing amoun amountt befo before re the the asset asset "or "or dispo disposal sal group group## was was classi classifie fied d as held held for sale sale,, adju adjust sted ed for for any any depr deprec ecia iati tion on,, amor amorti ti!a !ati tion on or reva revalu luat atio ions ns that that would ould have been recogni!e recogni!ed d had the asset "or disposal disposal group# group# not been classified classified as held for sale, and b# Its recoverable recoverable amount amount at at the date of the subsequen subsequentt decision decision not to to sell he entity shall include any required adjustment to the carrying amount of a non-current asset asset that that cease ceases s to be classi classifie fied d as held held for for sale sale in profit profit or loss loss from from conti continu nuin ing g operations in the period the '$ ceases to be classified as held for sale.

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10/16-9