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Dear Sir, when there is a discontinued operation recognized (NOT held for sale) then we report this division separately, and we depreciate all assets as before or we stop depreciation as we do in case of assets held for sale?
Thank you
We stop depreciating. What is the purpose of depreciating assets? It’s to match the cost of those assets against the revenues that are created as a result of using those assets
But if they are no longer used because the operations have been discontinued what’s the point of depreciating them?
OK?
Thank you! Let me ask another question regarding adjustment of assets held for sale. Is it adjusting or non adjusting event? If assets held for sale canceled to be sold should we adjust previous SOFP? The same for discontinued operation.
Thank you.
What was the situation as at the accounting year end? There’s your answer!
If the assets were not held for sale as at the year end (or if the operation were not discontinued as at the year end) then any subsequent change would be treated as a non-adjusting event and be fully disclosed within the notes to the financial statements
OK?
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