Under AS 24, Discontinuing Operations, the 'initial disclosure event' is the occurrence of which of the following, whichever is earlier?

Correct answer: D) Entering into a binding sale agreement for substantially all the assets of the operation, or the board approving a detailed formal plan and announcing it

Explanation

AS 24 defines the initial disclosure event as the earlier of (a) the enterprise entering into a binding sale agreement for substantially all the assets attributable to the discontinuing operation, and (b) the board of directors (or similar body) both approving a detailed, formal plan for the discontinuance and making an announcement of the plan. Informal discussions or later physical events do not trigger the disclosures.