Requirements

(a) Explain the reasons why:

i. the sale of the division should be classified as a non-current asset held for sale on the statement of financial position; and

ii. the sale of the division meets the definition of a discontinued operation in the statement of profit or loss. (4 marks)

(b) Explain how IFRS and UK GAAP differ regarding the treatment of the sale of the division and the discontinued operation.

(3 marks)

(c)

i. Prepare the statement of profit or loss for the year ended 31 December 2019 reflecting the additional information and the closure of the France division.

ii. State the figure that would be included on the statement of financial position at 31 December 2019 in respect of the office building.