Discuss whether the following cases meet the definition of discontinued operations in IFRS 5.

(a) Wong Co. had used two factories to manufacture office equipment. A general slump in the economy has resulted in a reduced demand for such equipment and the company has decided to move all the production facilities to one of the factories but keep the now empty factory in the hope that there will be an upturn in demand and require the return to two factory output.

(b) In addition to the manufacture of office equipment, Wong Co. supplied office stationery to private education establishments. In order to raise much needed cash, the office stationery supply business was sold. The office stationery supply business was operated separately from the manufacturing activities.

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IFRS 5 Non current Assets held for sale and discontinued operations IFRS 5 States that A operation w... View the full answer