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) A discontinued operating segment and Stand-alone assets and liabilities that form a distinct group within part of an operating segment.

Question

Quizplus · Accepted Answer

A disposal group comprises of assets which will be disposed of together either through sale or abandonment, and liabilities that are directly associated with those assets. Therefore, a discontinued operating segment and stand-alone assets and liabilities that form a distinct group within part of an operating segment can both form part of a disposal group. Accounts receivable that are expected to be sold to a factoring company are not part of a disposal group as they do not form a distinct group of assets and liabilities that will be disposed of together.

Which of the Following May Form Part of a Disposal