Subsidiary acquired for resale

Learning objectives

• Identify a subsidiary acquired exclusively with a view to resale as a discontinued operation.L3

Normative references

• IFRS 5 §32Discontinued operation: a component that either has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, or is part of a single coordinated plan to dispose of such a line or area, or is a subsidiary acquired exclusively with a view to resale.

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

1 question

• An entity acquires a subsidiary exclusively with a view to resale, then classifies it as held for sale. When is it a discontinued operation?L3