6.2.1 Requirements of FRS 102 An entity shall also disclose on the face of the income statement (or statement of comprehensive income if presented) an amount comprising the total of: (a)the post-tax profit or loss of discontinued operations; and Industry: food and drink. The amendments in this Update require additional disclosures about discontinued operations, including: 1. In particular, stakeholders have questioned whether there are circumstances in which it is appropriate to classify as current all assets and liabilities of the discontinued operation. Examples of these adjustments are: Benefit plan obligations. Therefore, your taxes payable will fall by this amount. A discontinued operation is a part of an entity that has either been disposed of or is classified as held-for-sale, and: represents a separate major line of business or geographical area of operations A company may report discontinued operations under GAAP as long as two conditions are met. Therefore, the after-tax loss from discontinued operations is $70,000 ($100,000 - $30,000). The major classes of line items constituting the pretax profit or loss (or For example, if the loss from discontinued operations is $100,000 and your tax rate is 30 percent, the applicable tax benefit is $30,000 ($100,000 x 0.30). It sets the presentation and disclosure requirements for discontinued operations. DISCONTINUED OPERATIONS AND DISPOSAL GROUP HELD FOR SALE; On 15 October 2018, the Group announced that it had reached an agreement to sell Greencore’s US business to Hearthside Food Solutions LLC for cash consideration of $1,075m, subject to customary adjustments for cash, debt and working capital. First, the … Discontinued operations: presentation and disclosure. Questions have arisen in practice regarding the presentation of current and noncurrent assets and liabilities of a discontinued operation in the statement of financial position. for the disposal of its 100% equity interest in DEF Bottles and Containers Sdn. NOTE 5. (“DEF”) comprising 100,000 ordinary shares of RM1.00 each, representing the whole of the issued and fully paid-up share capital of DEF for a total … The sample disclosures in this set of illustrative financial statements should not be considered to be the only acceptable form of presentation. For example, under existing GAAP, a discontinued operation may include a reportable segment, operating segment, reporting unit, subsidiary, or an asset group. Let me point out that you should apply IFRS 5 for all non-current assets – no exception. It did not require disclosure of items below this line other than for non-operating exceptional items. discontinued operation separately in the asset and liability sections, respectively, of the statement of financial position. Discontinued Operations Under GAAP . Bhd. Under FRS 102 in order for an operation/business to be disclosed as discontinued, the operation/business must have been disposed of (in relation to a sale) or have been closed (in relation to a termination) by the balance sheet date. Additional Discontinued Operations Disclosure Rules. Bhd. Greencore Group plc – Annual report – 28 September 2018. In addition, the IASB has issued several other amendments to its standards during the past year. Amendments to FRS 7 Statement of Cash Flows: Disclosure Initiative If there were adjustments for disposal-related amounts previously reported for discontinued operations, they should be classified separately within the discontinued operations section of the income statement in the current period. On 1 July 2010, the Company entered into a conditional share purchase agreement with XYZ International Sdn. DISCONTINUED OPERATIONS. An appendix illustrating example disclosures for the early adoption of IFRS 9 Financial Instruments, taking into account the amendments arising from IFRS 9 Financial Instruments (2010) and Mandatory Effective Date and Transition Disclosures (Amendments to IFRS 9 and IFRS 7) (2011). The form ... 2016) Sale and Discontinued Operations.