Varnay Ltd is a manufacturing company that prepares annual financial statements to 31 December. In November 2022, the company announced a plan to close down one of its manufacturing operations and to sell off the assets of that operation. The operation will be closed down over a period of approximately nine months and closure is expected to be complete by the end of July 2023. Sale of the operation's assets is expected to take place in September 2023.
Explain how this closure and sale should be dealt with in the financial statements of Varnay Ltd for the year to 31 December 2022 and for the year to 31 December 2023.