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IFRS 5

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › IFRS 5

  • This topic has 5 replies, 2 voices, and was last updated 7 years ago by MikeLittle.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • October 16, 2015 at 6:54 pm #276720
    Muslim Farooque
    Member
    • Topics: 190
    • Replies: 134
    • ☆☆☆

    Q. On 1 July 2000 its decided to close p area of operations , a press release is issued and employees are notified ,

    Losses from 1st July 2000 till September 2000( year end) are 600,000 and from September 2000 till 1st January the closure date they are 1 million.

    My question is that shouldn’t the losses of 600,000 be treated as profit and loss from discontinued operations (single figure) in September 2000 accounts rather than September 2001 which was the solution in Answers

    October 16, 2015 at 7:23 pm #276725
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22702
    • ☆☆☆☆☆

    The first point is, of course, that it cannot be dealt with in the 2000 financial statements as a discontinued operation because ….. it isn’t discontinued

    Now, are you really sure that they haven’t been expensed in year to September 2000? where have you found the question? I’d like to look at it (and the solution) for myself

    October 16, 2015 at 9:50 pm #276736
    Muslim Farooque
    Member
    • Topics: 190
    • Replies: 134
    • ☆☆☆

    No they have been expensed out in 2000 at 600,000 but not desperately as discontinued operation , I’m saying that discontinued operations figure should be given when the meeting and notification is done or when its finalized and actually closed down?

    October 17, 2015 at 7:34 am #276756
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22702
    • ☆☆☆☆☆

    The expression is “discontinued” not “discontinuing” – it’s a question of which participle is used. To be fair, before the revision to IFRS 5 the expression was “discontinuing” but that changed. If you think about it, all businesses – in fact, all forms of life and maybe even the planet itself – are discontinuing. It’s just a matter of time-frame.

    It was Einstein who famously said “There are only two things that are infinite – the Universe and man’s stupidity. And I’m not sure about the Universe.”

    In order to be treated as a discontinued operation under IFRS 5, the operation must actually be discontinued

    OK?

    October 18, 2015 at 6:58 am #276940
    Muslim Farooque
    Member
    • Topics: 190
    • Replies: 134
    • ☆☆☆

    Hahahahaha thanks sir

    October 18, 2015 at 8:32 am #276953
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22702
    • ☆☆☆☆☆

    You’re welcome, but don’t thank me – thank Einstein!

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