a. The objective of MFRS 5 Non-current Assets Held for Sale and Discontinued Operations specifies, amongst...
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a. The objective of MFRS 5 Non-current Assets Held for Sale and Discontinued Operations specifies, amongst other things, accounting for and presentation and disclosure of discontinued operations. Required: Define a discontinued operation and explain why the disclosure of such information is important to users of financial statements. (9 marks) b. Harriot's sole activity is the operation of hotels all over the world. Due to impact of pandemic, Harriot's directors made the following decisions during the year ended 31 March 2021: - - it disposed of all of its hotels in country A; it refurbished all of its hotels in country B in order to target the short term accommodation. The previous target market in country B had been aimed at tourists and business travelers. Required: Treating the two decisions separately, explain whether they meet the criteria for being classified as discontinued operations in the financial statements for the year ended 31 March 2021. (6 marks) a. The objective of MFRS 5 Non-current Assets Held for Sale and Discontinued Operations specifies, amongst other things, accounting for and presentation and disclosure of discontinued operations. Required: Define a discontinued operation and explain why the disclosure of such information is important to users of financial statements. (9 marks) b. Harriot's sole activity is the operation of hotels all over the world. Due to impact of pandemic, Harriot's directors made the following decisions during the year ended 31 March 2021: - - it disposed of all of its hotels in country A; it refurbished all of its hotels in country B in order to target the short term accommodation. The previous target market in country B had been aimed at tourists and business travelers. Required: Treating the two decisions separately, explain whether they meet the criteria for being classified as discontinued operations in the financial statements for the year ended 31 March 2021. (6 marks)
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A discontinued operation is a component of an entity that either has been disposed of or is classifi... View the full answer
Related Book For
Fraud examination
ISBN: 978-0538470841
4th edition
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
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