PRACTICE TOPIC
Discontinued Operations
Practice Discontinued Operations with 3 accounting challenges on Accountely — instant IAS/IFRS-compliant scored feedback on every submission.
What discontinued operations covers
A discontinued operation is a component of the business that has been disposed of, or is held for sale, and represents a separate major line of business or geographical area. Its results are stripped out of continuing operations and presented as a single net-of-tax amount, so a reader can see what the ongoing business earned without the disposal distorting it.
Challenges here ask you to separate continuing from discontinued results and present both, including the tax attributable to each.
Where marks are usually lost
- Leaving the discontinued results inside continuing operations.
- Presenting the discontinued amount gross when it should be net of tax.
- Failing to re-present the comparative period on the same basis.
3 Discontinued Operations practice challenges
TitleTypeDifficulty
Aurora Retail Corporation - Multi-step Income Statement with Discontinued Operations Income StmthardKestrel Group - Discontinued Operations: Income Statement and Statement of Financial Position Multi-StatementhardStratford Industrials plc - Statement of Financial Position with Assets Held for Sale Balance Sheethard