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Good Afternoon Sir!
Janne J13 (c)
1. it is understandable that on 31 May 2013 the sub did not meet the ifrs 5 requirements.
but what is unclear is why it did not meet the criteria for 31 May 12?
– we r told that shareholders have given the approval to sell the sub. Or is it that no other info on the criteria is given and thus we are forced to say it did not meet ifrs5 criteria in 2012?
2. the question says “Janne had shown the subsidiary as an asset held for sale and presented it as a discontinued operation …”
whats the difference between ‘shown’ and ‘presented’?
regards
The question also uses the expression “and reported a subsidiary as held for sale”
The difference between “shown the subsidiary as an asset held for sale and presented it as a discontinued operation”?
So far as I am aware there is no subtle distinction other than, on the Statement of Financial Position, the asset is shown as held for sale whereas, in the Statement of Profit or Loss, the results of this particular subsidiary are presented as you would present the results of any discontinued operation
Why is it not an asset held for sale as at 31 May, 2012?
It would appear, with the benefit of hindsight, that this subsidiary is not available for immediate sale, the sale highly probable within the next 12 months. There’s no indication of any active marketing at a realistic value that would be acceptable to the board of Janne and now there’s even activity that suggests business may be carried on into the future
If it doesn’t today satisfy the pre-conditions, then it must be shown as a continuing enterprise and, for comparison, it must also have been a continuing enterprise as at 31 May, 2012
OK?
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