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Thread: 24 Accounting Standard 24 Discontinuing Operations - AS 24

  1. #11
    Accounting Standards
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    Default Separate Disclosure for Each Discontinuing Operation of Accounting Standard (AS) 24 Discontinuing Operations

    Separate Disclosure for Each Discontinuing Operation of Accounting Standard (AS) 24 Discontinuing Operations


    31. Any disclosures required by this Statement should be presented separately for each discontinuing operation.

  2. #12
    Accounting Standards
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    Default Presentation of the Required Disclosures of Accounting Standard (AS) 24 Discontinuing Operations

    Presentation of the Required Disclosures of Accounting Standard (AS) 24 Discontinuing Operations

    32. The disclosures required by paragraphs 20, 23, 26, 28, 29 and 31 should be presented in the notes to the financial statements except the following which should be shown on the face of the statement of profit and loss:

    (a) the amount of pre-tax profit or loss from ordinary activities attributable to the discontinuing operation during the current financial reporting period, and the income tax expense related thereto (paragraph 20 (g)); and

    (b) the amount of the pre-tax gain or loss recognised on the disposal of assets or settlement of liabilities attributable to the discontinuing operation (paragraph 23 (a)).

  3. #13
    Accounting Standards
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    Default Illustrative Presentation and Disclosures of Accounting Standard (AS) 24 Discontinuing Operations

    Illustrative Presentation and Disclosures

    33. Appendix 1 provides examples of the presentation and disclosures required by this Statement.
    Restatement of Prior Periods


    34. Comparative information for prior periods that is presented in financial statements prepared after the initial disclosure event should be restated to segregate assets, liabilities, revenue, expenses, and
    cash flows of continuing and discontinuing operations in a manner similar to that required by paragraphs 20, 23, 26, 28, 29, 31 and 32. 35. Appendix 2 illustrates application of paragraph 34.

  4. #14
    Accounting Standards
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    Default Disclosure in Interim Financial Reports of Accounting Standard (AS) 24 Discontinuing Operations

    Disclosure in Interim Financial Reports of Accounting Standard (AS) 24 Discontinuing Operations


    36. Disclosures in an interim financial report in respect of a discontinuing operation should be made in accordance with AS 25, Interim Financial Reporting, including:


    (a) any significant activities or events since the end of the most recent annual reporting period relating to a discontinuing operation; and

    (b) any significant changes in the amount or timing of cash flows relating to the assets to be disposed or liabilities to be settled.

  5. #15
    Accounting Standards
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    Default Appendix 1Illustrative Disclosures of Accounting Standard (AS) 24 Discontinuing Operations

    Appendix 1

    Illustrative Disclosures

    Discontinuing Operations 461

    This appendix is illustrative only and does not form part of the Accounting Standard. The purpose of the appendix is to illustrate the application of the Accounting Standard to assist in clarifying its
    meaning.

    Facts

    Delta Company has three segments, Food Division, Beverage Division and Clothing Division.

    Clothing Division, is deemed inconsistent with the long-term strategy of the Company. Management has decided, therefore, to dispose of the Clothing Division.


    On 15 November 20X1, the Board of Directors of Delta Company approved a detailed, formal plan for disposal of Clothing Division, and an announcement was made. On that date, the carrying amount of the Clothing Division's net assets was Rs. 90 lakhs (assets of Rs. 105 lakhs minus liabilities of Rs. 15 lakhs).

    The recoverable amount of the assets carried at Rs. 105 lakhs was estimated to be Rs. 85 lakhs and the Company had concluded that a pre-tax impairment loss of Rs. 20 lakhs should be recognised.

    At 31 December 20Xl, the carrying amount of the Clothing Division's net assets was Rs. 70 lakhs (assets of Rs. 85 lakhs minus liabilities of Rs. 15 lakhs). There was no further impairment of assets between 15 November 20X1 and 31 December 20X1 when the financial statements were prepared.

    On 30 September 20X2, the carrying amount of the net assets of the Clothing Division continued to be Rs. 70 lakhs. On that day, Delta Company signed a legally binding contract to sell the ClothingDivision.

    The sale is expected to be completed by 31 January 20X3. The recoverable amount of the net assets is Rs. 60 lakhs. Based on that amount, an additional impairment loss of Rs. 10 lakhs is recognised.

    In addition, prior to 31 January 20X3, the sale contract obliges Delta Company to terminate employment of certain employees of theClothing Division,whichwouldresult interminationcostofRs.30lakhs, tobepaid by 30 June 20X3. A liability and related expense in this regard is also
    recognised.

    The Company continued to operate the Clothing Division throughout 20X2.

    At 31 December 20X2, the carrying amount of the Clothing Division's net assets is Rs. 45 lakhs, consisting of assets of Rs. 80 lakhs minus liabilities of Rs. 35 lakhs (including provision for expected termination cost of Rs. 30 lakhs).


    Delta Company prepares its financial statements annually as of 31 December. It does not prepare a cash flow statement.

    Other figures in the following financial statements are assumed to illustrate the presentation and disclosures required by the Statement.

  6. #16
    Accounting Standards
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    Default Appendix 2 Accounting Standard (AS) 24 Discontinuing Operations

    Appendix 2 Accounting Standard (AS) 24 Discontinuing Operations

    Click here for appendix

    http://www.knowledgebible.com/forum/...ing-Operations

  7. #17
    Accounting Standards
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    Default ANNOUNCEMENT Accounting Standard (AS) 24, Discontinuing Operations

    ANNOUNCEMENT


    Accounting Standard (AS) 24, Discontinuing Operations


    Accounting Standard (AS) 24, Discontinuing Operations, was issued in February 2002 as a recommendatory Accounting Standard. The Council, at its 224th meeting, held on March 8-10, 2002, decided that AS 24 would be mandatory in nature in respect of accounting periods commencing on or after 1-4-2004 for the following:

    Enterprises whose equity or debt securities are listed on a recognised stock exchange in India, and enterprises that are in the process of issuing equity or debt securities that will be listed on a recognised stock exchange in India as evidenced by the board of directors' resolution in this regard.
    All other commercial, industrial and business reporting enterprises, whose turnover for the accounting period exceeds Rs. 50 crores.


    In respect of all other enterprises, the Accounting Standard would be mandatory in nature in respect of accounting periods commencing on or after 1-4-2005. Earlier application of the accounting standard would be encouraged.

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