"IAS 35: Discontinuing Operations – A Brief Overview"

"IAS 35: Discontinuing Operations – A Brief Overview"

Bilal Ahmad Bilal Ahmad

Bilal Ahmad

Fractional CFO for Startups | Financial Modeling to Drive Growth and Profitability | Empowering Founders with Data-Driven Financial Leadership

发布日期: 2024年2月17日
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IAS 35: Discontinuing Operations – A Brief Overview


The standard focuses on ensuring transparency and consistency in financial reporting during such changes. It defines a discontinued operation as a component of an entity that either has been disposed of or is classified as held for sale, and:

1. Represents a separate major line of business or geographical area of operations,

2. Is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations, or

3. Is a subsidiary acquired exclusively with a view to resale.

IAS 35 requires that the results of discontinued operations be presented separately in the financial statements. This distinction helps stakeholders understand the financial effects of these activities and distinguish them from the entity’s continuing operations. It enhances comparability and clarity, allowing users of financial statements to make more informed decisions.

The standard also stipulates the disclosures necessary for discontinued operations, including a description of the discontinued operation, the financial effects of discontinuing it, and if the operation has not been disposed of at the balance sheet date, the method by which the carrying amount of its assets is determined.

Adherence to IAS 35 ensures a robust and transparent reporting environment, vital for maintaining investor confidence and market integrity, especially during times of significant organizational change. It underscores the commitment to providing stakeholders with clear and comprehensive financial information, vital for effective decision-making in the global economy.


#AccountingStandards #IFRS #GAAP #FinancialReporting #Audit #CPA #AccountingPrinciples #FinancialAccounting #AccountingUpdates

#AccountingRegulations #FASB #IASB #AuditQuality #FinancialStatements #SustainabilityReporting #TaxCompliance #FinancialControls

#InternalAuditing #CorporateReporting #FinancialAnalysis #IFRSImplementation #RevenueRecognition

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