Question
On December 1, 2025 the board of Stratford Industrials plc committed to a plan to sell its fabrication unit, and at December 31, 2025 the unit met all IFRS 5 criteria to be classified as held for sale . The fair value less costs to sell of the dispos
Scoring
- 40% Account naming / line matching
- 40% Amount correctness
- 20% Structure / section placement
IFRS 5 — Non-current Assets Held for Sale and Discontinued Operations
A discontinued operation is presented as a single net-of-tax amount on the face of the income statement, separately from continuing operations, with comparatives re-presented on the same basis. Confirm the component meets the definition before separating anything.
Common mistakes
- Leaving the discontinued result inside continuing operations line by line instead of presenting one net figure.
- Presenting the amount gross when IFRS 5 requires it net of tax.
- Failing to re-present the comparative period on the same basis.
Further readingIFRS 5: held for sale and discontinued operations