Crazy Horse Incorporated (hereinafter "CHI") is a public gaming company with an interim reporting period of June 30. On June 15, 2019, Full Boat Company (FBC), a subsidiary consolidated by CHI in accordance with the ASC, consolidation standards, filed for reorganization under Chapter 11 of the Bankruptcy Code. Although CHI retains its 75 percent ownership interest, the court controls FBC as of the bankruptcy event. Because CHI has lost control, in the second quarter of 2019, it uses the cost method to account for its investment in FBC upon deconsolidation, in accordance with ASC 810-10 (the "deconsolidation event"). CHI anticipates some level of ownership or involvement in FBC upon FBC's emergence from bankruptcy.

FBC historically comprised CHI's operating casinos (including the hotels, underlying land, and related intangibles); it has the same fiscal year as CHI. FBC provides casino entertainment services and owns, operates, or manages 25 gaming and resort properties (collectively, the "FBC properties"). Through a related-party management services agreement, CHI Management Inc. (CHM), an indirect subsidiary of CHI, historically provided all of FBC's operating services, including management and employees.

As a result of the deconsolidation event, CHI evaluates whether FBC's historical operations should be presented as discontinued operations for the quarter ending on June 30, 2019. Before the deconsolidation event, FBC represented approximately 45 percent of the carrying value of CHI's total consolidated assets, 65 percent of total consolidated liabilities, and 55 percent of total consolidated revenue; therefore, FBC represented a significant portion of CHI's consolidated operations.

While FBC holds 25 properties, CHI continues to own and operate approximately 10 gaming and resort properties (collectively, the "CHI properties"). The CHI properties are located in the same geographic areas as the FBC properties and have similar operating characteristics and profitability profiles. The CHI properties and FBC properties continue to be operated with the CHI brand name and managed by CHM during the bankruptcy.

Assume the following in evaluating this case:

FBC represents a "disposal group" as defined in the ASC.

FBC meets the definition of a "component of an entity" in the ASC.

The deconsolidation event represents a disposal by means other than sale

in accordance with the ASC. While the ASC provides specific examples

of abandonment or distribution to owners in a spin as disposals other

than by sale, the deconsolidation event is analogous to abandonment in

which legal title of FBC is retained by CHI but CHI effectively loses

control and significant influence over the entity because of the

bankruptcy court and bankruptcy proceedings.

Requirements:

1.Should CHI report FBC's operations as discontinued operations as of June 30, 2019?

2.Assuming that the answer to Requirement 1 is yes, how does the reporting of discontinued operations affect the ratio(s) seen on income statements.

3.Is this ratio reporting required to be shown on the income statement or can it be only disclosed in the notes to the financial statements.

4.Does the conclusion or accounting analysis change for any of the questions above when analyzed in accordance with IFRSs?