The Handbook to IFRS Transition and to IFRS U.S. GAAP Dual Reporting

4.5.10 Discontinued Operations

4.5.10.1 Separate Presentation

Under U.S. GAAP, Regulation S-X, and IFRSs, discontinued operations must be a separate section from income from continuing operations (under U.S. GAAP and Regulation S-X, preceding extraordinary items).452 In fact, enucleating results that will not be repeated for a long time is deemed to assist financial statement users in projecting cash flows.453 Health care entities must also report discontinued operations separately from the performance indicator.454 Under IFRS 5, an entity that presents an income statement (as opposed to the single statement of comprehensive income) must display discontinued operations in that statement.455

Comment: IAS 1 still includes discontinued operations into the list of material items to present in the statement of comprehensive income or disclose in the notes.456 However, discontinued operations are already part of the minimum presentation content of the statements of income,457 with a specific accounting. IAS 8 (1993), before the issuance of IAS 35, Discontinuing Operations (superseded by IFRS 5), included them as part of extraordinary items.458

4.5.10.2 Manner of Presentation

Under IFRS 5, entities must present at least a single line on the face of a statement of income as an after-tax figure for discontinued operations. The Standard considers this sufficient in the light of the short horizon involved with future cash flows. Conversely, Subsection 205-20-45-3 (FASB Statement ...