In particular, stakeholders have questioned whether there are circumstances in which it is appropriate to classify as current all assets and liabilities of the discontinued operation. Discontinued Operations Under GAAP . The major classes of line items constituting the pretax profit or loss (or Amendments to FRS 7 Statement of Cash Flows: Disclosure Initiative 6.2.1 Requirements of FRS 102 An entity shall also disclose on the face of the income statement (or statement of comprehensive income if presented) an amount comprising the total of: (a)the post-tax profit or loss of discontinued operations; and The sample disclosures in this set of illustrative financial statements should not be considered to be the only acceptable form of presentation. Under FRS 102 in order for an operation/business to be disclosed as discontinued, the operation/business must have been disposed of (in relation to a sale) or have been closed (in relation to a termination) by the balance sheet date. (“DEF”) comprising 100,000 ordinary shares of RM1.00 each, representing the whole of the issued and fully paid-up share capital of DEF for a total … Greencore Group plc – Annual report – 28 September 2018. Therefore, the after-tax loss from discontinued operations is $70,000 ($100,000 - $30,000). The amendments in this Update require additional disclosures about discontinued operations, including: 1. NOTE 5. On 1 July 2010, the Company entered into a conditional share purchase agreement with XYZ International Sdn. Additional Discontinued Operations Disclosure Rules. Examples of these adjustments are: Benefit plan obligations. A company may report discontinued operations under GAAP as long as two conditions are met. DISCONTINUED OPERATIONS AND DISPOSAL GROUP HELD FOR SALE; On 15 October 2018, the Group announced that it had reached an agreement to sell Greencore’s US business to Hearthside Food Solutions LLC for cash consideration of $1,075m, subject to customary adjustments for cash, debt and working capital. Questions have arisen in practice regarding the presentation of current and noncurrent assets and liabilities of a discontinued operation in the statement of financial position. In addition, the IASB has issued several other amendments to its standards during the past year. Discontinued operations: presentation and disclosure. First, the … If there were adjustments for disposal-related amounts previously reported for discontinued operations, they should be classified separately within the discontinued operations section of the income statement in the current period. Industry: food and drink. for the disposal of its 100% equity interest in DEF Bottles and Containers Sdn. discontinued operation separately in the asset and liability sections, respectively, of the statement of financial position. Let me point out that you should apply IFRS 5 for all non-current assets – no exception. Bhd. For example, if the loss from discontinued operations is $100,000 and your tax rate is 30 percent, the applicable tax benefit is $30,000 ($100,000 x 0.30). For example, under existing GAAP, a discontinued operation may include a reportable segment, operating segment, reporting unit, subsidiary, or an asset group. It did not require disclosure of items below this line other than for non-operating exceptional items. It sets the presentation and disclosure requirements for discontinued operations. Bhd. DISCONTINUED OPERATIONS. Therefore, your taxes payable will fall by this amount. The form ... 2016) Sale and Discontinued Operations. 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