Discontinued Operations - IFRS 5

hyper-2-step, dreamy trance · 3:57

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Lyrics

[Verse 1]
Management decides to sell, not operate
A major line of business waits at the gate
Held for sale or discontinued, different rules apply
IFRS Five will tell us how to classify

Assets bundled up together, disposal group complete
Fair value less the costs to sell, that's how we compete
With carrying amounts to find the lower of the two
One year timeline starts the clock, commitment must be true

[Chorus]
Hold for sale, measure fair
Lower value, that's the care
Classify and separate
Don't depreciate, calculate
Discontinued shows apart
Revenue gets a different chart
Six criteria, check them well
Assets destined for the sell

[Verse 2]
Highly probable the sale will actually occur
Price is reasonable compared to current fair value per
Actively marketed to buyers in the field
Management committed, plan is truly sealed

Available immediately in present condition now
Only usual and customary terms we will allow
Unlikely that significant changes will be made
To the plan or that the plan will be delayed

[Chorus]
Hold for sale, measure fair
Lower value, that's the care
Classify and separate
Don't depreciate, calculate
Discontinued shows apart
Revenue gets a different chart
Six criteria, check them well
Assets destined for the sell

[Bridge]
Component of an entity
Operations and cash flows clearly
Distinguishable from the rest
Separate major line of business test

Present separately on the face
Income statement shows the space
Profit loss from operations
Plus the gain or loss from valuations

[Verse 3]
When conditions are no longer met, reverse the call
Reclassify back to held for use, measure at the small
Of carrying amount before held for sale
Less depreciation, or recoverable, tell the tale

Single line presentation for discontinued dreams
Cash flows in the notes, unravel all the schemes
Prior periods restated, comparative display
Show the world what's going, what is here to stay

[Chorus]
Hold for sale, measure fair
Lower value, that's the care
Classify and separate
Don't depreciate, calculate
Discontinued shows apart
Revenue gets a different chart
Six criteria, check them well
Assets destined for the sell

[Outro]
IFRS Five, the sale will thrive
Measurement and disclosure, keep the books alive
Classification matters when you're letting go
Present it clearly so the users know

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