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Just to clarify is selling off company branch included as discontinued operation? Thanks in advance.
Hi,
if this situation satisfies criteria as an asset held for sale (ahfs), than YES, it should be treated and presented as discontinued operation.Criteria from OT notes:
• available for immediate sale
• sale highly probable within 12 months
• actively marketed
• management committed to the sale
• unlikely that planned sale will be changed or withdrawn
• where an asset has been purchased solely with a view of selling it, it may be classed as ahfs on acquisitionSangria, please stop answering questions on the “Ask the tutor” pages
Learner, is the branch a clearly separable line of business, or business located in a clearly definable geographical area.
If it isn’t (and branches do not, as a general rule, satisfy either one or both of those criteria) then it’s not an asset held for sale nor as a discontinued operation
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