Adjustments in later periods

Learning objectives

• Explain the treatment of subsequent adjustments to amounts previously presented in discontinued operations.L3, L4

Normative references

• IFRS 5 §35Adjustments in the current period to amounts previously presented in discontinued operations that are directly related to the disposal of a discontinued operation in a prior period are classified separately in discontinued operations, with disclosure of their nature and amount (examples: resolution of purchase price adjustments or indemnifications, retained environmental or product warranty obligations, settlement of employee benefit plan obligations directly related to the disposal).

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• A period after the disposal of a discontinued operation, an adjustment arises on an amount previously presented in discontinued operations (for example a revised indemnity). How is it classified?L4