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Hi sir.
In this question, its said that Tbay was acquired exclusively with a view to sale, and at 31 May 20X6 (the year end), meets the criteria of being a disposal group.So my question is, since Tbay qualifies as held for sale only at the year end, why are we not consolidating the years results in the group income statement? Regarding ”acquired exclusively with a view to sale”>> Does this mean it has already been classified as held for sale?
According to my knowledge, the results till when it was classified as held for sale should be consolidated.
Is there something wrong with my understanding?Hi I found out the answer. Tbay was acquired ”exclusively with a view to sell” according to the question. This means that it is classified as held for sale from the time it was acquired, hence we don’t consolidate the items, only a line item is needed (normal procedure of discontinuued operations).
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