How are discontinued operations reported in the income statement?

Discontinued operations are reported on the income statement as a separate entry from continuing operations. When companies merge, understanding which assets are being divested can give a clearer picture of how a company will make money in the future.

Do you restate for discontinued operations?

Comparative information. P/L for prior periods should be restated so that all operations that have been classified as discontinued by the end of the current reporting period are presented according to IFRS 5 requirements (IFRS 5.34).

How do you classify discontinued operations?

A discontinued operation is a part of an entity that has either been disposed of or is classified as held-for-sale, and: represents a separate major line of business or geographical area of operations.

What is the IFRS requirement for the discontinued operations?

IFRS 5 requires discontinued operations to be presented separately in the financial statements to keep the readers of the financial statements informed about those operations the entity has discontinued, and those operations the entity is continuing with in order to generate future profits and cash flows.

What is the purpose of AASB 5 discontinued operations?

The purpose of AASB 5 is to specify the accounting for non-current assets held for sale and the presentation and disclosure of discontinued operations. Administered by: Treasury. General Comments: When applicable, this Standard supersedes AASB 1042 – Discontinuing Operations – August 2000.

What is the purpose of AASB 5 for non-current assets?

The purpose of AASB 5 is to specify the accounting for non-current assets held for sale and the presentation and disclosure of discontinued operations. General Comments: When applicable, this Standard supersedes AASB 1042 – Discontinuing Operations – August 2000. Table of contents.

What is the Australian Accounting Standards Board AASB 5?

The Australian Accounting Standards Board makes Accounting Standard AASB 5 Non-current Assets Held for Sale and Discontinued Operationsunder section 334 of the Corporations Act 2001. Kris Peach Dated 7 August 2015 Chair – AASB Accounting Standard AASB 5 Non-current Assets Held for Sale and Discontinued Operations Objective

What are non current assets held for sale and discontinued operations?

AASB 5 Non-current Assets Held for Sale and Discontinued Operationsincorporates IFRS 5 Non-current Assets Held for Sale and Discontinued Operationsissued by the International Accounting Standards Board (IASB). Australian-specific paragraphs (which are not included in IFRS 5) are identified with the prefix “Aus”.