Discontinued operations (continued) Discontinued operations (continued)
F. Discontinued operations (continued) F. Discontinued operations (continued)
US GAAP How discontinued
ISSUE
IFRS
Indonesian GAAP
US GAAP
ISSUE
IFRS
Indonesian GAAP
Operations and cash flows that
Either substantially in its
Similar to IFRS. Operations
Disclosures – where
Face of the income statement
Similar to IFRS.
Similar to IFRS. From date on
have been disposed of or
entirety or piecemeal or
and cash flows have been or
or in notes.
which component is disposed
classified as held for sale.
through abandonment.
will be eliminated, and entity
of or classified as held for sale,
Assets and liabilities of related
No specific guidance for
will not have significant
results of operations are
disposal groups classified as
assets and liabilities of
continuing involvement.
reported as discontinued
operations in a separate Envisaged timescale
held for sale are disclosed
disposal groups classified as
Completed within a year, with
Over several months or longer
Similar to IFRS.
separately on the balance
held for sale.
component of income before
extraordinary items and Starting date for disclosure
limited exceptions.
but pursuant to single plan.
sheet.
From the date on which a
Whichever occurs earlier:
Similar to IFRS.
cumulative effect of accounting
component has been disposed
changes. Assets and liabilities
(a) the company has entered
of or, if earlier, is classified as
of related disposal groups
into a binding agreement to
held for sale.
classified as held for sale are
sell substantially all of the
segregated on the balance
assets attributable to the
sheet.
discontinuing operation; or
Disclosures – what
• Description of disposal
• Description of the
Similar to IFRS.
(b) the authority within the
group.
discontinued component
company, has both (i) approved a detailed, formal
• Expected manner and
and which segment it is
plan for the discontinuance
timing of disposal.
part of.
and (ii) made an
• Date and nature of initial
• Facts and circumstances
announcement of the plan.
disclosure event.
leading to sale or disposal.
Measurement
Lower of carrying value or fair
Follow other standards e.g. on
Similar to IFRS.
• Gain or loss recognised on
• Expected timescale for
value less costs to sell.
provision and impairment.
classification as held for
completion of
discontinuance.
Presentation
Present a single amount on the
Continue to consolidate as
Similar to IFRS. From
sale.
face of the income statement
normal until discontinuance
measurement date, present
• Carrying value of total
• Revenue, expenses, pre-tax
comprising the post-tax profit
completed, with additional
result from operations of
assets/liabilities to be
result, tax and cash flows
or loss of discontinued
disclosures on face of income
discontinued component (and
disposed of.
for current and prior
operations and an analysis of
statements or in notes.
gain or loss on disposal) as
periods.
• Revenue, expenses, pre-
this amount either on the face
separate lines in the income
tax result, tax and cash
of the income statement or in
statement, net of tax, after
• Segment of disposal group.
flows for current period.
the notes for both current and
income from continuing
prior periods. Separate
operations. Balance sheet
Comparatives
Represent income statement
Restate for effects of
Similar to IFRS.
classification on the balance
consolidation as normal, if
for effects of discontinued
discontinuing operations.
sheet for assets and liabilities
discontinuance not completed
operations.
for the current period only.
by period end, with segregation of assets and liabilities (current and non- current) related to the disposal
REFERENCES: IFRS: IFRS 5. Indonesian GAAP: PSAK 58 (Revised 2003). US GAAP: FAS 144.
groups classified as held for sale.
Ending date of disclosure
Until completion of the
Similar to IFRS.
Similar to IFRS.
discontinuance.
G. Post-balance-sheet events
H. Interim financial reporting (continued)
All three frameworks have similar standards on post-balance-sheet events.