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Hello IFRS Community,

I have a question related to the following case:

Company A has a subsidiary B in a different country which does standard business operations and has a valid long term lease contract.
As of 31.12.2022 decision was made to slowly shut down operations and withdraw from the market. Subsidiary B is not going concern (meaning that intention is to liquidate within next couple of months potentially). Lease contract has non-cancellable period for the next 4 years, there is no termination option possible to be exercised.

Does this change somehow a form of presentation (based on fair value) as of 31.12.2022?

I tried to look into IFRS 5, but did not come into any conclusion.

Thank you so much in advance for any hints.

After the subsidiary is wound up, what plans does the group have for the lease contract?

Hi Marek, thanks for the question.

Best scenario in this case would be to terminate the contract immediately.
However, at the moment there is no other way out but negotiating early exit with the lessor.

The lease termination costs can be presented within discontinued operations. But I may have missed the essence of your question. If so, please elaborate further.