Discontinued operation

Financial Reporting

Sir in illutration 14, part 2, the activities has been ceased without selling any assets. As per definition of discontinued operations " Discontinued operation is a component of an entity that either has been disposed off and is classified as held for sale". In this question we said that it is not classified as held for sale... and also not disposed off... but we classify this as discontinued operation. Am I missing something? Can we classify a component as DO without being disposed off or classified as HFS? [Video Time Stamp: 02:12] Video Details ------------- Ind AS - CA Final Ind AS 105 Non Current Assets held for Sale and discontinued operations #21. Illustration 14 & 15 - Discontinued Ops

Balavignesh

CA Final

★ 755

10-Apr-26 09:29

103

Answers (1)

even though the assets weren't sold, the activities have ceased. If theoperation represents a separate major line of business or geographical area and by stopping all operations, the entity has effectively "disposed of" the business through abandonment.

CA Suraj Lakhotia

Admin

10-Apr-26 09:59