Discontinued operation file: component, single post-tax amount, analysis and comparatives: Year 20X6

Context

Aquilon Industries SA (fictitious entity) closes its books on 31 December 20X6. On 30 June 20X6, it classifies its packaging division as held for sale (the criteria are met, case data); the division is sold in two lots before the closing date. The group must be measured, its loss allocated, the disposals recorded and the discontinued operation presented with its comparatives.

Assignment

Discontinued operation file

Purpose of the workpaper

For each period presented (one instance per period: current year and comparative year), describe the component and its distinguishable cash flows, then enter the revenue, expenses and income tax of the period (datum of the file). The file computes the post-tax result of the component and then the single amount: post-tax result of the period, plus the post-tax result of the disposal, less the post-tax measurement loss. The tax on the measurement and on the disposal is a datum of the file. Then justify the boundary of the component and whether it represents a separate major line of business or geographical area: the standard sets no numerical threshold.

Questions of the file covered by this workpaper

• Is the division a discontinued operation? Justify, without a numerical threshold.
• Compute the post-tax result of the division for 20X6 and for 20X5.
• Compute the single amount for 20X6 and that of the 20X5 comparative.
• How should the single amount, its analysis and the comparatives be presented?

• MemoBoard noteOpen
• ScheduleCarrying amounts and fair value of the groupOpen
• ScheduleIncome statement of the divisionOpen
• ContractDeeds of disposalOpen
• InvoiceAudit feesOpen