Page 209 - F1 Integrated Workbook STUDENT 2018

IFRRS 5 Nonn-currentt assets held for sale andd disconttinued
operations

Exxampple 2

Echho is an enntity that opperates witth three divvisions A, BB and C. DDuring the
yeaar ended 31 March 200X1 divisioon B closedd.

Exttracts from the trial baalance of EEcho as att 31 March 20X1 are shown below.

Dr Cr
$000 $000
Sales revenue divisionss A & C 2,4000
Sales revenue division B 6500
Opeerating exppenses divvisions A && C 1,650
Opeerating exppenses divvisions B 525
Finance costss (all relatinng to continuing activvities) 70
Incoome tax 225
Thee income taax charge for the yeaar is made up of a chharge of $2200,000 onn
conntinuing acctivities andd $25,000 ffor disconttinued activvities.

A looss of $50,,000 was aalso incurreed on the ddisposal off assets beelonging too
diviision B andd $80,000 was spentt on restruccturing diviisions A annd C followwing
the terminatioon of divisioon B.

Reqquired:

Preepare the sstatementt of profit or loss for the yearr ended 311 March 200X1
commplying wwith IAS 1 (revised) Presentattion of Financial Staatements aand
IFRRS 5 Discoontinued OOperationss.

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