What are the disclosure and presentation requirements of AS 24 for discontinuing operations? Give four examples of activities that do not…

(a) (i) An enterprise should include the following information relating to a discontinuing operation in its financial statements beginning with the financial statements for the period in which the initial disclosure event (as defined in paragraph 15) occurs: (a) a description of the discontinuing operation(s); (b) the business or geographical segment(s) in which it is reported as per AS 17, Segment Reporting; (c) the date and nature of the initial disclosure event; (d) the date or period in which the discontinuance is expected to be completed if known or determinable; (e) the carrying amounts, as of the balance sheet date, of the total assets to be disposed of and the total liabilities to be settled; (f) the amounts of revenue and expenses in respect of the ordinary activities attributable to the discontinuing operation during the current financial reporting period; (g) the amount of pre-tax profit or loss from ordinary activities attributable to the discontinuing operation during the current financial reporting period, and the income tax expense related thereto; and (h) the amounts of net cash flows attributable to the operating, investing, and financing activities of the discontinuing operation during the current financial reporting period. (ii) Para 3 of AS 24 “Discontinuing Operations” explains the criteria for determination of discontinuing operations. According to Paragraph 9 of AS 24, examples of activities that do not necessarily satisfy criterion (a) of paragraph 3, but that might do so in combination with other circumstances, include: (i) Gradual or evolutionary phasing out of a product line or class of service; (ii) Discontinuing, even if relatively abruptly, several products within an ongoing line of business; (iii) Shifting of some production or marketing activities for a particular line of business from one location to another; and (iv) Closing of a facility to achieve productivity improvements or other cost savings. An example in relation to consolidated financial statements is selling a subsidiary whose activities are similar to those of the parent or other subsidiaries.