ACCA FR · Chapter 3 · Question 11 of 12
Which of the following would be presented as a discontinued operation under IFRS 5?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The sale during the year of a hotel division that was one of the group's three major business lines
Explanation
A discontinued operation is a component that has been disposed of or is classified as held for sale and represents a separate major line of business or geographical area of operations. Closing one shop out of 60 or selling surplus machinery is not a major line of business. A decision taken after the reporting date cannot cause classification at the reporting date.
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