Marathon Limited (“Marathon”) has three divisions: a chocolate manufacturing division, a packaging division and a sweets manufacturing division. On 1 April 2017, the directors of Marathon decided to sell the sweets division as it was not in line with the core activities of the company. The decision was announced to the employees and the public on 1 June 2017. The net assets of the sweets division as at 31 December 2017 were €16 million (€20 million assets and €4 million liabilities).

On 10 May 2018, the board signed an agreement with Spangles Limited to sell the sweets division for €20 million. The net assets of the sweets division at this date were €18 million

(€23 million assets and €5 million liabilities). Marathon incurred redundancy costs of

€1 million, which had been expected from the date the decision to sell the division was made.

The redundancies are not reflected in the statement of profit or loss and other comprehensive income below. The sale was completed on 1 July 2018 and the sweets division did not trade between 10 May 2018 and 1 July 2018.

The results of the sweets manufacturing division for 2017 and 2018 are:

Requirement Prepare extracts from the financial statements of Marathon (including Notes) for the year ended 31 December 2018 (including 2017 comparatives) in accordance with IFRS 5.

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2017 000 Turnover 65,000 Expenses (50,000) 2018 (to 1 July) 000 40,000 (32,000) Operating profit 15,000 8,000 Tax charge (5,000) (3,000)