Which of the following may form part of a disposal group?
A)Accounts receivable which are expected to be sold to a factoring company.
B)A discontinued operating segment.
C)Stand-alone assets and liabilities that form a distinct group within part of an operating segment.
D)Both B and C are correct.

Question

Quizplus · Accepted Answer

A disposal group consists of assets and liabilities that are to be disposed of together as a group in a single transaction. A discontinued operating segment is a distinct part of an entity's business that has been or will be disposed of, while stand-alone assets and liabilities that form a distinct group within part of an operating segment can also be considered a disposal group. Accounts receivable that are expected to be sold to a factoring company do not necessarily form a disposal group on their own.

Which of the Following May Form Part of a Disposal