A. AMABLE Ltd (AMABLE) is a listed company which assemble personal computers (PCs) and it is preparing its financial statements for the year ended 31 May 2018. AMABLE plans to close down one of its divisions. This division, which is classified as a separate business segment, will cease all of its activities on 31 July 2018. Most of the assets of the business will be redeployed elsewhere in AMABLE's business, however some smaller items of plant will be sold off or scrapped. Approximately half of the staff of the division will be made redundant and they were notified of the decision in late May 2018. Customers and suppliers were notified at the same time. The annual 2018 financial statements are scheduled to be released to the markets on 9 August 2018. Required: Advise the directors as to the financial reporting issues arising from the above matters and explain the appropriate treatment in AMABLEs financial statements in each case.

B. In accordance with IFRS 5: Non-Current Assets Held for Sale and Discontinued Operations, a non-current asset (disposal group) is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. However, to qualify to be classified as held for sale, detailed criteria must be met. Identify any TWO criteria to be met before an asset can be classified as held for sale. C. Explain with justification, whether each of the following could most likely be classified as a discontinued operation under IFRS 5: Non-current Assets Held for Sale and Discontinued Operations in this year's financial statements:

i) A reportable operating segment that met the definition of held for sale after the year end, but before the financial statements were authorized for issue.

ii) A reportable operating segment that was closed down during the financial year. The assets of the segment were broken up and used in other divisions of the company.

iii) A division of a business, classified as held for sale, that was correctly treated as a discontinued operation in last year's financial statements, but which has not been sold by this year-end due to the sale being referred to the National Insurance Commission, which regulates the Insurance industry. The commission is not expected to report its findings until 6 months after this year end.