IFRS uses the idea of a disposal group, a group of assets and directly associated liabilities that a firm will dispose of as a group in a single transaction.The disposal group notion of IFRS envisions a larger unit than the component notion of U.S.GAAP.In the year that a firm decides to sell or otherwise dispose of a unit that qualifies as a(n) _____ it aggregates the assets and liabilities of that unit on the balance sheet into four groups: current assets, noncurrent assets, current liabilities, and noncurrent liabilities.
A)continuing operation
B)discontinued operation
C)extraordinary gain or loss
D)impaired operation
E)paid-in-capital

Question

Quizplus · Accepted Answer

The blank in the sentence refers to a unit that qualifies as a discontinued operation, which is a component of an entity that has been disposed of or is classified as held for sale and represents a separate major line of business or geographical area of operations. When a firm decides to sell or dispose of a discontinued operation, it must aggregate the assets and liabilities of that unit on the balance sheet into four groups: current assets, noncurrent assets, current liabilities, and noncurrent liabilities, as per the requirements of IFRS.

IFRS Uses the Idea of a Disposal Group, a Group