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aspect co (March/June 2017)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › aspect co (March/June 2017)

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by P2-D2.
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  • Author
    Posts
  • January 11, 2019 at 8:12 am #500774
    mohmadi
    Member
    • Topics: 2
    • Replies: 3
    • ☆

    Hello!

    This is an extract from the June/March 2017 question:
    On 1 April 20X4, Aspect Co decided to focus on its core business and so disposed of a non-core division. The disposal generated a loss of $1·5m which is included within operating expenses.

    The question is why do we need to deduct this loss on disposal of non-core division from operating expenses of Aspect Co?

    Thank you in advance!

    January 11, 2019 at 10:46 pm #500911
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6440
    • ☆☆☆☆☆

    Hi,

    If it is a discontinued operation then it will need to be disclosed separately and therefore removed from the operating expenses.

    Thanks

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