IFRS 5 – Discontinued Operations

Hello Chris

Let us say there is a large restaurant business that has 600 chain of restaurants and has a reporting date of 31st December 2016. Let says the board of directors have made a decision to close ONLY 5 branches at 30th November 2016. At the previous year end of 31st Dec 2015, the annual turnover was $1,200 million, The 5 branches that were expected to close down made a combined total turnover of $5 million at 31st Dec 2015.

The IFRS 5 mentions a major line of business operations or major geographical area of operations. I am not sure whether it means it must have a material effect on the entity’s business or financial results?

I am NOT sure whether the decision to close ONLY 5 branches would qualify as a Discontinued operation under IFRS 5? If the answer is NO how should be presented?