Assume that Elrond Inc. decided to sell DemandTV Ltd., a subsidiary, on September 30, 2023. There is a formal plan to dispose of the business component, and the sale qualifies for discontinued operations treatment. Pertinent data on the operations of the TV subsidiary are as follows: loss from operations from beginning of year to September 30, $1.9 million (net of tax of $700,000); loss from operations from September 30 to end of 2023, $700,000 (net of tax of $250,000); estimated loss on disposal of net assets to December 31, 2023 (net of tax of $50,000), $150,000. The year end is December 31. Elrond prepares financial statements in accordance with IFRS.

Instructions 

a. What is the income/loss from discontinued operations reported in 2023? 

b. Prepare the discontinued operations section of the income statement for the year ended 2023. 

c. If the amount reported in 2023 as a gain or loss on disposal of the subsidiary becomes materially different from the amount arrived at in 2024, when and how is this difference reported, if at all? 

d. How would the discontinued operation be presented on the statement of financial position? 

e. How would your answer to part (d) be different if Elrond prepared financial statements in accordance with ASPE?