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Difference between AS 24 and Ind AS 105

Open uri20170510 32134 1ue0f38?1494421710 rohit agarwal asked about 3 years ago

What is the Difference between AS 24 and Ind AS 105 Non-current Assets Held for Sale and Discontinued Operations

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 HIMANSHU answered almost 3 years ago

Difference between Ind AS 105 on Non-current Assets Held for Sale and Discontinued Operations and the existing AS 24 on Discontinuing Operations :- Ind AS 105 specifies the accounting for non- current assets held for sale, and the presentation and disclosure of discontinued operations. The existing AS 24 establishes principles for reporting information about discontinuing operations. It does not deal with the non-current assets held for sale; fixed assets retired from active used and held for sale, are dealt in existing AS 10, Accounting for Fixed Assets. (Paragraph 1 of Ind AS 105 and ‘Objective’ of existing AS 24 ) -In the existing AS 24, requirements related to cash flow statement are applicable when the enterprise presents a cash flow statement. Ind AS 105 does not mention so. (Paragraph 2 of existing AS 24 ) - Under Ind AS 105, a discontinued operation is a component of an entity that either has been disposed of or is classified as held for sale. In the existing AS 24, there is no concept of discontinued operations but it deals with discontinuing operations. - As per Ind AS 105, the sale should be expected to qualify for recognition as a completed sale within one year from the date of classification with certain exceptions. The existing AS 24 does not specify any time period in this regard as it relates to discontinuing operations -The existing AS 24 specifies about the initial disclosure event in respect to a discontinuing operation. Ind AS 105 does not mention so as it relates to discontinued operation. (Paragraph 15 of existing AS 24)

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Picsjoin 2017224123730582 Archana answered about 3 years ago

Hie Rohit, **Difference between Ind AS 105 on Non-current Assets Held for Sale and Discontinued Operations and the existing AS 24 on Discontinuing Operations :-** 1. Ind AS 105 specifies the accounting for non- current assets held for sale, and the presentation and disclosure of discontinued operations. The existing AS 24 establishes principles for reporting information about discontinuing operations. It does not deal with the non-current assets held for sale; fixed assets retired from active used and held for sale, are dealt in existing AS 10, Accounting for Fixed Assets. (Paragraph 1 of Ind AS 105 and ‘Objective’ of existing AS 24 ) 2. In the existing AS 24, requirements related to cash flow statement are applicable when the enterprise presents a cash flow statement. Ind AS 105 does not mention so. (Paragraph 2 of existing AS 24 ) 3. Under Ind AS 105, a discontinued operation is a component of an entity that either has been disposed of or is classified as held for sale. In the existing AS 24, there is no concept of discontinued operations but it deals with discontinuing operations. 4. As per Ind AS 105, the sale should be expected to qualify for recognition as a completed sale within one year from the date of classification with certain exceptions. The existing AS 24 does not specify any time period in this regard as it relates to discontinuing operations 5. The existing AS 24 specifies about the initial disclosure event in respect to a discontinuing operation. Ind AS 105 does not mention so as it relates to discontinued operation. (Paragraph 15 of existing AS 24) 6. Ind AS 105 specifically mentions that abandonment of assets should not be classified as held for sale. In the existing AS 24, abandonment of assets is classified as a discontinuing operation; however changing the scope of an operations or the manner in which it is conducted is not abandonment and hence not a discontinuing operation. (Paragraph 7 of existing AS 24 and paragraph 13 of Ind AS 105).

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