Under IFRS 5, classification as a discontinued operation requires that the determination be made on the facts existing at the end of the reporting period. Thus, retroactive classification as a discontinued operation is prohibited when the discontinued criteria are met after the date of the statement of financial position. Briefly explain why this is important and how it is consistent with principles laid out in the Conceptual Framework.

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The Answer of Under IFRS 5, classification as a discontinued operation requires that the determination be made on the facts existing at the end of the reporting period. Thus, retroactive classification as a discontinued operation is prohibited when the discontinued criteria are met after the date of the statement of financial position. Briefly explain why this is important and how it is consistent with principles laid out in the Conceptual Framework.

Under IFRS 5, Classification as a Discontinued Operation Requires That