BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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REVENUE FROM THE SALE OF MERCHANDISE
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INTEREST INCOME
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IMPAIRMENT LOSS OF ASSETS OF A MAJOR DIVISION CLASSIFIED AS HELD FOR SALE
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UNREALIZED LOSS ON TRADING INVESTMENT
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Detailed explanation-1: -A discontinued operation is a component of an entity that has been disposed of or is classified as held for sale, and: Represents a separate major line of business or geographical area of operations, Is part of a plan to dispose of, or. Is a subsidiary acquired solely with a view to resale.
Detailed explanation-2: -Non-current assets and liabilities are classified as held for sale if it is highly probable that they will be realised through sale rather than continued use. These assets or disposal groups are recognised at the lower of their carrying amounts or fair values less costs to sell.
Detailed explanation-3: -Which of the following criteria is not required for the results of a component of an entity to be classified as discontinued operation? Management must have entered into a sale agreement.
Detailed explanation-4: -Non-current assets that are to be abandoned 13 An entity shall not classify as held for sale a non-current asset (or disposal group) that is to be abandoned. This is because its carrying amount will be recovered principally through continuing use.