b) In May 2018, Sports Kenya decided to sell one of its local business divisions through a mixed asset and share deal. The decision to sell the division at a price of KShs 40 million was made public in November 2018 and gained shareholder approval in December 2018. It was decided that the payment of any agreed sale price could be deferred until 30 November 2018. The business division was presented as a disposal group in the statement of financial position as at 30 November 2018. At the initial classification of the division as held for sale, its net carrying amount was KShs 90 million. In writing down the disposal groups carrying amount, Sports Kenya accounted for an impairment loss of KShs 30 million which represented the difference between the carrying amount and value of the assets measured in accordance with applicable International Financial Reporting Standards (IFRS). In the financial statements at 30 November 2018, Sports Kenya showed the following costs as provisions relating to the continuing operations. These costs were related to the business division being sold and were as follows:

(i) A loss relating to a potential write-off of a trade receivable which had gone into liquidation. The trade receivable had sold the goods to a third party and the division had guaranteed the receipt of the sale proceeds.

(ii) An expense relating to the discounting of the long-term receivable on the fixed amount of the sale price of the disposal group; and

(iii) A provision was charged which related to the expected transaction costs of the sale including legal advice and lawyer fees.

Required: The directors wish to know how to treat the above transactions with reference to International Financial Reporting Standards where appropriate. (7 marks)