INTERNATIONAL ACCOUNTING STANDARD (IAS) 35
Discontinuing Operations
Published: Official Journal of the European Union (L 261/184, Volume 46, 13 October 2003)
INTERNATIONAL ACCOUNTING STANDARD (IAS) 35
Прекратил действие в связи с заменой его Международным стандартом финансовой отчетности (IFRS) 5
См. на русском языке
Discontinuing Operations
This International Accounting Standard was approved by the IASC Board in April 1998 and became effective for financial statements covering periods beginning on or after 1 January 1999.
This Standard supersedes paragraphs 19 to 22 of IAS 8, net profit or loss for the period, fundamental errors and changes in accounting policies.
In 1999, paragraph 8 of the introduction, paragraphs 20, 21, 29, 30 and 32 of the Standard, and paragraph 4 of Appendix В were amended to conform to the terminology used in IAS 10 (revised 1999), events after the balance sheet date and IAS 37, provisions, contingent liabilities and contingent assets.
INTRODUCTION
1. This Standard (IAS 35) addresses presentation and disclosures relating to discontinuing operations. That
2. matter had been dealt with relatively briefly in paragraphs 19 to 22 of IAS 8, net profit or loss for the period,
3. fundamental errors and changes in accounting policies. IAS 35 supersedes those paragraphs of IAS 8. IAS 35
4. is effective for financial statements for periods beginning on or after 1 January 1999. Earlier application is
5. encouraged.
6. The objectives of IAS 35 are to establish a basis for segregating information about a major operation that an
7. enterprise is discontinuing from information about its continuing operations and to specify minimum
8. disclosures about a discontinuing operation. Distinguishing discontinuing and continuing operations improves
9. the ability of investors, creditors, and other users of financial statements to make projections of the enterprise's
10. cash flows, earnings-generating capacity, and financial position.
11. A discontinuing operation is a relatively large component of an enterprise — such as a business or
12. geographical segment under IAS 14, segment reporting — that the enterprise, pursuant to a single plan,
13. either is disposing of substantially in its entirety or is terminating through abandonment or piecemeal sale.
14. This Standard uses the term 'discontinuing operation' rather than the traditional 'discontinued operation'
15. because 'discontinued operation' (past tense) implies that recognition of a discontinuance is necessary only at
16. or near the end of the process of discontinuing the operation. This Standard requires that disclosures about a
17. discontinuing operation begin earlier than that — when a detailed formal plan for disposal has been adopted
18. and announced or when the enterprise has already contracted for the disposal.
19. This is a presentation and disclosure Standard. It focuses on how to present a discontinuing operation in an
20. enterprise's financial statements and what information to disclose. It does not establish any new principles for
21. deciding when and how to recognise and measure the income, expenses, cash flows, and changes in assets
22. and liabilities relating to a discontinuing operation. Instead, it requires that enterprises follow the recognition
23. and measurement principles in other International Accounting Standards.
24. Under this Standard, information about a planned discontinuance must initially be disclosed in the first set of
25. financial statements issued by an enterprise after (a) it has entered into an agreement to sell substantially all
26. of the assets of the discontinuing operation or (b) its board of directors or other similar governing body has
27. both approved and announced the planned discontinuance. Required disclosures include:
— a description of the discontinuing operation,
— the business or geographical segment(s) in which it is reported,
— the date and nature of the initial disclosure event,
— the timing of expected completion,
— the carrying amounts of the total assets and the total liabilities to be disposed of,
— the amounts of revenue, expenses, and pre-tax profit or loss attributable to the discontinuing operation,
— and related income tax expense,
— the net cash flows attributable to the operating, investing, and financing activities of the discontinuing
— operation,
— the amount of any gain or loss that is recognised on the disposal of assets or settlement of liabilities
— attributable to the discontinuing operation, and related income tax expense, and
— the net selling prices, after disposal costs, from the sale of those net assets for which the enterprise has
— entered into one or more binding sale agreements, and the expected timing thereof, and the carrying
— amounts of those net assets.
7. Financial statements for periods after initial disclosure must update those disclosures, including a description
8. of any significant changes in the amount or timing of cash flows relating to the assets and liabilities to be
9. disposed of or settled and the causes of those changes.
10. The disclosures would be made if a plan for disposal is approved and publicly announced after the end of an
11. enterprise's financial reporting period but before the financial statements for that period are authorised for
12. issue. The disclosures continue until completion of the disposal.
13. Comparative information for prior periods that is presented in financial statements prepared after initial
14. disclosure must be restated to segregate the continuing and discontinuing assets, liabilities, income, expenses,
15. and cash flows. By separating discontinuing and continuing operations retrospectively, the ability of a user of
16. financial statements to make projections is improved.
CONTENTS
Paragraphs
Objective
Scope 1
Definitions 2-16
Discontinuing operation 2-15
Initial disclosure event 16
Recognition and measurement 17-26
Provisions 20-21
Impairment losses 22-26
Presentation and disclosure 27-48
Initial disclosure 27-30
Other disclosures 31-32
Updating disclosures 33-37
Separate disclosure for each discontinuing operation 38
Presentation of the required disclosures 39-43
Face of financial statements or notes 39-40
Not an extraordinary item 41-42
Restricted use of the term 'discontinuing operation' 43
Illustrative disclosures 44
Restatement of prior periods 45-46
Disclosure in interim financial reports 47-48
Effective date 49-50
The standards, which have been set in bold italic type, should be read in the context of the background material and implementation guidance in this Standard, and in the context of the 'Preface to International Accounting Standards'. International Accounting Standards are not intended to apply to immaterial items (see paragraph 12 of the Preface).
OBJECTIVE
The objective of this Standard is to establish principles for reporting information about discontinuing operations, thereby enhancing the ability of users of financial statements to make projections of an enterprise's cash flows, earnings-generating capacity, and financial position by segregating information about discontinuing operations from information about continuing operations.
SCOPE
1. This Standard applies to all discontinuing operations of all enterprises.
DEFINITIONS
Discontinuing operation
2. A discontinuing operation is a component of an enterprise:
(a) that the enterprise, pursuant to a single plan, is:
(i) disposing of substantially in its entirety, such as by selling the component in a single transaction, by demerger or spin-off of ownership of the component to the enterprise's shareholders;
(ii) disposing of piecemeal, such as by selling off the component's assets and settling its liabilities individually; or
(Hi) terminating through abandonment;
(b) that represents a separate major line of business or geographical area of operations; and
(c) that can be distinguished operationally and for financial reporting purposes.
3. Under criterion (a) of the definition (paragraph 2(a)), a discontinuing operation may be disposed of in its
4. entirety or piecemeal, but always pursuant to an overall plan to discontinue the entire component.
5. If an enterprise sells a component substantially in its entirety, the result can be a net gain or net loss. For such
6. a discontinuance, there is a single date at which a binding sale agreement is entered into, although the actual
7. transfer of possession and control of the discontinuing operation may occur at a later date. Also, payments
8. to the seller may occur at the time of the agreement, at the time of the transfer, or over an extended future
9. period.
10. Instead of disposing of a major component in its entirety, an enterprise may discontinue and dispose of the
11. component by selling its assets and settling its liabilities piecemeal (individually or in small groups). For
12. piecemeal disposals, while the overall result may be a net gain or a net loss, the sale of an individual asset or
13. settlement of an individual liability may have the opposite effect. Moreover, there is no single date at which
14. an overall binding sale agreement is entered into. Rather, the sales of assets and settlements of liabilities may
15. occur over a period of months or perhaps even longer, and the end of a financial reporting period may occur
16. part way through the disposal period. To qualify as a discontinuing operation, the disposal must be pursuant
17. to a single co-ordinated plan.
18. An enterprise may terminate an operation by abandonment without substantial sales of assets. An abandoned
19. operation would be a discontinuing operation if it satisfies the criteria in the definition. However, changing
20. the scope of an operation or the manner in which it is conducted is not an abandonment because that
21. operation, although changed, is continuing.
22. Business enterprises frequently close facilities, abandon products or even product lines, and change the size
23. of their work force in response to market forces. While those kinds of terminations generally are not, in and
24. of themselves, discontinuing operations as that term is used in this Standard, they can occur in connection
25. with a discontinuing operation.
26. Examples of activities that do not necessarily satisfy criterion (a) of paragraph 2, but that might do so in
27. combination with other circumstances, include:
(a) gradual or evolutionary phasing out of a product line or class of service;
(b) discontinuing, even if relatively abruptly, several products within an ongoing line of business;
(c) shifting of some production or marketing activities for a particular line of business from one location
(d) to another;
(e) closing of a facility to achieve productivity improvements or other cost savings; and
(f) selling a subsidiary whose activities are similar to those of the parent or other subsidiaries.
9. A reportable business segment or geographical segment as defined in IAS 14, segment reporting, would
10. normally satisfy criterion (b) of the definition of a discontinuing operation (paragraph 2(b)), that is, it would
11. represent a separate major line of business or geographical area of operations. A part of a segment as defined
12. in IAS 14 may also satisfy criterion (b) of the definition. For an enterprise that operates in a single business or
13. geographical segment and therefore does not report segment information, a major product or service line
14. may also satisfy the criteria of the definition.
15. IAS 14 permits, but does not require, that different stages of vertically integrated operations be identified as
16. separate business segments. Such vertically integrated business segments may satisfy criterion (b) of the
17. definition of a discontinuing operation.
18. A component can be distinguished operationally and for financial reporting purposes — criterion (c) of the
19. definition (paragraph 2(c)) — if:
(a) its operating assets and liabilities can be directly attributed to it;
(b) its income (gross revenue) can be directly attributed to it; and
(c) at least a majority of its operating expenses can be directly attributed to it.
12. Assets, liabilities, income, and expenses are directly attributable to a component if they would be eliminated
13. when the component is sold, abandoned or otherwise disposed of. Interest and other financing cost is
14. attributed to a discontinuing operation only if the related debt is similarly attributed.
15. As defined in this Standard, discontinuing operations are expected to occur relatively infrequently. Some
16. changes that are not classified as discontinuing operations may qualify as restructurings (see IAS 37,
17. provisions, contingent liabilities and contingent assets).
18. Also, some infrequently occurring events that do not qualify either as discontinuing operations or
19. restructurings may result in items of income or expense that require separate disclosure pursuant to IAS 8,
20. net profit or loss for the period, fundamental errors and changes in accounting policies, because their size,
21. nature, or incidence make them relevant to explain the performance of the enterprise for the period.
22. The fact that a disposal of a component of an enterprise is classified as a discontinuing operation under this
23. Standard does not, in itself, bring into question the enterprise's ability to continue as a going concern. IAS 1,
24. presentation of financial statements, requires disclosure of uncertainties relating to an enterprise's ability to
25. continue as a going concern and of any conclusion that an enterprise is not a going concern.
Initial disclosure event
16. With respect to a discontinuing operation, the initial disclosure event is the occurrence of one of the
following, whichever occurs earlier:
(a) the enterprise has entered into a binding sale agreement for substantially all of the assets attributable
(b) to the discontinuing operation; or
(c) the enterprise's board of directors or similar governing body has both
(i) approved a detailed, formal
plan for the discontinuance and
(ii) made an announcement of the plan.
RECOGNITION AND MEASUREMENT
17. An enterprise should apply the principles of recognition and measurement that are set out in other
18. International Accounting Standards for the purpose of deciding when and how to recognise and measure
19. the changes in assets and liabilities and the income, expenses, and cash flows relating to a discontinuing
20. operation.
21. This Standard does not establish any recognition and measurement principles. Rather, it requires that an
22. enterprise follow recognition and measurement principles established in other Standards. Two Standards that
23. are likely to be relevant in this regard are:
(a) IAS 36, impairment of assets; and
(b) IAS 37, provisions, contingent liabilities and contingent assets.
19. Other Standards that may be relevant include IAS 19, employee benefits, with respect to recognition of
termination benefits, and IAS 16, property, plant and equipment, with respect to disposals of those kinds of
assets.
Provisions
20. A discontinuing operation is a restructuring as that term is defined in IAS 37, provisions, contingent liabilities
and contingent assets. IAS 37 provides guidance for certain of the requirements of this Standard, including:
(a) what constitutes a 'detailed, formal plan for the discontinuance' as that term is used in paragraph 16(b)
(b) of this Standard; and
(c) what constitutes an 'announcement of the plan' as that term is used in paragraph 16(b) of this Standard.
21. IAS 37 defines when a provision should be recognised. In some cases, the event that obligates the enterprise
occurs after the end of a financial reporting period but before the financial statements for that period have
been authorised for issue. Paragraph 29 of this Standard requires disclosures about a discontinuing operation
in such cases.
Impairment losses
22. The approval and announcement of a plan for discontinuance is an indication that the assets attributable to
23. the discontinuing operation may be impaired or that an impairment loss previously recognised for those
24. assets should be increased or reversed. Therefore, in accordance with IAS 36, impairment of assets, an
25. enterprise estimates the recoverable amount of each asset of the discontinuing operation (the higher of the
26. asset's net selling price and its value in use) and recognises an impairment loss or reversal of a prior
27. impairment loss, if any.
28. In applying IAS 36 to a discontinuing operation, an enterprise determines whether the recoverable amount
29. of an asset of a discontinuing operation is assessed for the individual asset or for the asset's cash-generating
30. unit (defined in IAS 36 as the smallest identifiable group of assets that includes the asset under review and
31. that generates cash inflows from continuing use that are largely independent of the cash inflows from other
32. assets or groups of assets). For example:
(a) if the enterprise sells the discontinuing operation substantially in its entirety, none of the assets of the
(b) discontinuing operation generate cash inflows independently from other assets within the discontinuing
(c) operation. Therefore, recoverable amount is determined for the discontinuing operation as a whole and
(d) an impairment loss, if any, is allocated among the assets of the discontinuing operation in accordance
(e) with IAS 36;
(f) if the enterprise disposes of the discontinuing operation in other ways such as piecemeal sales, the
(g) recoverable amount is determined for individual assets, unless the assets are sold in groups; and
(h) if the enterprise abandons the discontinuing operation, the recoverable amount is determined for
