Discontinued operation
A discontinued operation is a component of an entity that has been disposed of or is classified as held for sale and meets the specified IFRS 5 conditions, such as representing a separate major line of business or geographical area. Its results are presented and disclosed separately as required.
Worked example
A company sells a major geographical business line; the auditor evaluates whether it meets the definition and whether required presentation is complete.
Common mistake
Not every disposal or held-for-sale asset automatically qualifies as a discontinued operation.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |
| ACCA | FR | Direct | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |