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Dear Mike,
Supose there is group consisting of only parent A and subsidiary B. Parent A controls sub B and prepares consolidated financial statements for years. However during the year (say 2016) parent decides to sell sub B. Parent has a plan to sell sub B and is actively marketing sale of sub B therefore according to IFRS 5 sub B meets criteria of discontinued operation. As I understand, under IFRS 5 parent has to disclose in its separate financial statements the sum of post tax profit or loss of discontinued operation and net cash flows relating to discontinued operation. However I do not understand does that mean that there is no need to prepare consolidated financial statements (does discontinued operation mean that effectivly parent lost control of sub B)?
Thank you.
Petar
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