Question

Question About about IFRS 5: Non current assets held for sale

What is the presentation of termination of business segments in the statement of income and other comprehensive income of the company?
A. Discontinued operations are presented as a deduction or addition to Retained Earnings Balance.
B. Amounts arising from discontinued operations are detailed based on the income and expense categories.
C. The entity presents termination of business segments as a single amount on the Income Statement and other comprehensive income with analysis on notes to the financial statements or portions of the income statement separate from continuing operations.
D. Discontinued operations are presented one line below the gross profit and the tax expense arising from the transaction are presented as income tax expense.

Answer 1

C. The entity presents termination of  business segments as a single amount on the Income Statement and other comprehensive income with analysis on notes to the financial statements or portions of the income statement separate from continuing operations.

Explanation -  Entities shall disclose a single amount in the statement of comprehensive income or separate statement of profit or loss comprising the total of (i) the post-tax profit or loss of discontinued operations and (ii) the post-tax gain or loss recognized on the measurement to fair value less costs to sell or on the disposal of the assets or disposal groups constituting the discontinued operation. An analysis of this single amount is also required by paragraph 33 of IFRS 5 Non current Assets Held for Sale and Discontinued Operations. This analysis may be presented in the notes or in the statement of comprehensive income (separate statement of profit or loss).