Disclosures
IFRS 5 requires the following disclosures about assets (or disposal groups) that are held for sale: [IFRS 5.41]
description of the non-current asset or disposal group description of facts and circumstances of the sale (disposal) and the expected timing impairment losses and reversals, if any, and where in the statement of comprehensive income they are recognised if applicable, the reportable segment in which the non-current asset (or disposal group) is presented in accordance with IFRS 8 Operating Segments
Disclosures in other IFRSs do not apply to assets held for sale (or discontinued operations, discussed below) unless those other IFRSs require specific disclosures in respect of such assets, or in respect of certain measurement disclosures where assets and liabilities are outside the scope of the measurement requirements of IFRS 5. [IFRS 5.5B]
Key provisions of IFRS 5 relating to discontinued operations
Classification as discontinuing
A discontinued operation is a component of an entity that either has been disposed of or is classified as held for sale, and: [IFRS 5.32]
represents either a separate major line of business or a geographical area of operations is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations, or is a subsidiary acquired exclusively with a view to resale and the disposal involves loss of control.
IFRS 5 prohibits the retroactive classification as a discontinued operation, when the discontinued criteria are met after the end of the reporting period. [IFRS 5.12]
Disclosure in the statement of comprehensive income
The sum of the post-tax profit or loss of the discontinued operation and the post-tax gain or loss recognised on the measurement to fair value less cost to sell or fair value adjustments on the disposal of the assets (or disposal group) is presented as a single amount on the face of the statement of comprehensive income. If the entity presents profit or loss in a separate statement, a section identified as relating to discontinued operations is presented in that separate statement. [IFRS 5.33-33A].
Detailed disclosure of revenue, expenses, pre-tax profit or loss and related income taxes is required either in the notes or in the statement of comprehensive income in a section distinct from continuing operations. [IFRS 5.33] Such detailed disclosures must cover both the current and all prior periods presented in the financial statements. [IFRS 5.34]
Cash flow information
The net cash flows attributable to the operating, investing, and financing activities of a discontinued operation is separately presented on the face of the cash flow statement or disclosed in the notes. [IFRS 5.33]
Disclosures
The following additional disclosures are required:
adjustments made in the current period to amounts disclosed as a discontinued operation in prior periods must be separately disclosed [IFRS 5.35] if an entity ceases to classify a component as held for sale, the results of that component previously presented in discontinued operations must be reclassified and included in income from continuing operations for all periods presented [IFRS 5.36]
Special edition of IAS Plus Newsletter on IFRS 5
Click to download a Special Global Edition of our IAS Plus Newsletter (PDF 56k) devoted to IFRS 5.
