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Quiz 17 of 164

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🎯Discontinued operations & unusual items TF

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Deleted User 21 October 2023

Hello Manpeet,

When a manufacturing company sells one of its manufacturing facilities, and the assets of that facility represent a significant portion of the total company’s assets (typically, a segment representing 10% or more of the total company’s assets, revenues, or operating profit), it is accounted for as a segment disposal. This means that the sale of the manufacturing facility is treated as a significant event, and specific accounting and disclosure requirements may apply, as per accounting standards such as IFRS (International Financial Reporting Standards) or US GAAP (Generally Accepted Accounting Principles). This is done to provide transparency about the impact of the disposal on the company’s financial statements.

Let us know if you have any further questions.
Farhat Lectures support team.

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Kajal Goff 5 December 2025

Can you explain the difference between question 1 and 2. They both represent 10% of revenue and or assets so why is the answer different. What am I missing here?

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1. Maroun, CPA 6 December 2025
  
  Hello Kajal,
  
  You’re right to be confused here because questions 1 and 2 lacked clarity.
  I updated both questions.
  Thank you for bringing this to our attention!
  
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