CERTYNEX IFRS ACADEMY

An entity acquires a subsidiary exclusively with a view to resale, then classifies it as held for sale. When is it a discontinued operation?

It must necessarily represent a separate major line of business, like any other component.

It can be one without representing a separate major line of business or geographical area.

It is one on condition that it has already been sold at the closing date, the sale having to be completed.

It cannot be one, resale being precisely the very purpose of the acquisition of that subsidiary.