Non-current assets held for sale and discountinued operations : analysis of IFRS 5 and implementation in consolidated financial statements

This is the title of the chartered accountancy thesis, presented in November 2024 by the founder of the firm.

IFRS 5 addresses the definition, presentation, and measurement in financial statements of the impact of a group’s divestment policies, whether through disposals or the abandonment of business segments, homogeneous asset groups, or individual assets. Specific and standardized disclosures must be provided depending on whether the divestment has been completed or is ongoing at the reporting date.
Preparers and reviewers of consolidated financial statements generally agree that this standard is particularly complex to implement.
The author aimed to shed light on the grey areas of the standard while also proposing a set of tools to support its proper application in financial reporting.
Among these tools (non-exhaustive list):

• Decision -making framework for applying IFRS 5 ;
• Is the elimination of reciprocal accounts between discontinued and continuing operations systematic ?
• Definition of a methodology for handling discontinued operations in consolidated financial statements, based on an update of the consolidation software’s reference framework and targeted checks to address the “presentation” and “measurement” aspects of the standard ;
• Tool for calculating the deconsolidation result to be disclosed under discontinued operations.

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