Discontinued Operations

When was the decision to close put into the public domain? In your unusual example, as a business that is actually continuing as at the year end, the concept of discontinuance is irrelevant It could be that the asset should be classified as 'held for sale' if all the necessary criteria are met, but it's not discontinued Does that answer you?

if the criteria of discontinued operations is met but the actual closure takes place 2 weeks after year end, will it be considered as discontinued operations?

"if the criteria of discontinued operations is met but the actual closure takes place 2 weeks after year end" That's an impossible combination! The word 'discontinued' is the PAST tense of the verb To be classed as 'discontinued' it must have ..... discontinued!

simply sir im saying that if the decision is made and everyone is conveyed and all regarding the closure, but the segment officially closes 2 weeks after year end, will it be dealt under IFRS 5 this year??

"but the segment officially closes 2 weeks after year end" I appear to be struggling getting this point across, but I'll persevere! At the year end, no matter what decisions had been made nor who has been told, the business is still continuing ... ... and therefore ... ... it's not discontinued OK now?

its ok sir but one last thing that, ive been told by one of my tutors that the criteria for discontinued operations is 1. it should be closed/sold before year end or 2.held for sale at year end, is this criteria correct? and if not whats the correct criteria?

Yes, it should ideally have been closed or sold before the year end However, it can still be classed as discontinued if it is held for sale and is no longer operating Put it in the context of a motor car You've just bought yourself a new car in November Hopefully you will have sold the old one by the end of December - you're advertising it quite heavily and there's a lot of interest shown You've not driven the old one once since you bought the new car Two possibles ... 1) you've already sold the old one - that's quite clearly a discontinued operation - or 2) you've not yet managed to sell the old one but you are marketing it aggressively at a price that you would be prepared to accept. It's correctly classified as held-for-sale and has not been used since the new replacement car was purchased But the real point here is that an asset held-for-sale is not necessarily a discontinued operation. We could still be using it but we are prepared to sell it at a moment's notice All elephants are animals but not all animals are elephants ... a discontinued operation may be held-for-sale but not all held-for-sale are necessarily discontinued

awesome sir thanks,sorry for taking so much of your time

No problem, you're welcome