Nca hfs

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August 15, 2018 at 8:16 pm #468052
zkaay
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Hi sir,

Could u clarify the difference between these concepts

1) non current assets held for sale

2) disposal group

3) discountinued operations

Thanks v much
August 17, 2018 at 3:41 pm #468240
P2-D2
Keymaster
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Hi,

They are all very closely linked. NCA-HFS is a specific asset that is being sold in the next twelve months, whilst the disposal groups is a group of assets (CGU) that is being disposed of in the next twelve months. The treatment of these is then dealt with on the SFP.

If we have a NCA-HFS then we need to consider if it also meets the definition of a discontinued operation to be disclosed on the SPL. This obviously won’t apply to a single asset held for sale but is likely for a disposal group. Have a look at the criteria for a discontinued operation in the notes.

Thanks
August 20, 2018 at 11:35 pm #468661
zkaay
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Thanks v much for this great, well explainations

Ive looked into the notes regarding discountined operations

However am not totally clear
1) Could u explain it more?

2) is it always the accounting treatement for discountinued operations is to be disclosed only?

3) disposal of whole sub 100% is this a disposal group and discounted operations ?

Thanks v much
August 21, 2018 at 8:46 am #468712
P2-D2
Keymaster
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Hi,

IFRS 5 is all about disclosure for discontinued operations and the disposal of a subsidiary would need to be a significant component of a business to be disclosed separately.

Thanks
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