IFRS 16 vs discontinuing operations
Posted: 26 Mar 2024, 09:59
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.
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.