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Chapter 3

Discontinued operations

2.1 Criteria

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations says that a
discontinued operation is a component of an entity that has been sold, or which is
classified as held for sale, and:

 is a separate line of business (either in terms of operations or location),

 is part of a plan to dispose of a separate line of business, or

 is a subsidiary acquired solely for the purpose of resale.

An asset or disposal group is held for sale if its value will be mainly
recovered through a sales transaction and the sale is highly probable.

2.2 Presentation

IFRS 5 requires that a single amount for discontinued operations is presented on
the face of the statement of profit or loss. This comprises:

 the profit or loss of the operation

 any profit or loss on disposal, or any loss on classification as held for sale.

In comparative figures, the operations are also presented as discontinued.

Analysis of this single amount should be provided in a disclosure note.

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