Presentation and Disclosure - Audit of Accounting Estimates

An enterprise should involve the following information relating to a discontinuing operation in its financial statements starting along with the financial statements for the time in which the initial disclosure even happens.

(i) A description of the discontinuing process

(ii) The geographical or business segments whether it is reported in accordance along with IAS 14

(iii) The nature and date of the initial disclosure event

(iv) The period or date in which the discontinuance is expected to be completed whether determinable or known

(v) The carrying amounts as of the balance sheet date of the total assets and the net liabilities to be disposed of

(vi) The amounts of expenses and revenue and pre-tax loss or profit from ordinary activities attributable to the discontinuing operation within the recent financial reporting time, and the income tax expense relating thereof.

(vii) The amounts of total cash flows attributable to the financing, investing, and operating activities of the discontinuing operation within the recent financial reporting period.

Whether the initial disclosure even occurs after the end of an enterprise's financial reporting period however before the financial statements or that time are approved through the board of directors or as same governing body, so those financial statements should involve the disclosures particular above for the duration covered through those financial statements.

Separate disclosure is used for each material discontinuing operation.

Whenever assets are sold or liabilities settled in discontinuance, the pre-tax loss or gain, and the income tax expense relating to it might be disclosed on the face of the income statement however not as an extraordinary item.  Now disclosures (a) to (g) above may be disclosed through note or on the face of the income statement.

For assets not yet sold however for that a binding sale agreement exists, the total selling prices and the expected date of receipt must be disclosed through note.