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CA Intermediate · Advanced Accounting · AS 24 Discontinuing Operations

Godavari Pharma Ltd presents its financial statements for the year ended 31 March 2026 with a discontinuing operation (Veterinary division) whose initial disclosure event occurred in November 2025. It also presented comparative figures for 2024-25. Which statement about presentation is correct under AS 24?

Disclosures about the discontinuing operation are presented separately, and prior period comparative information is restated to segregate continuing from discontinuing operations. Not restating comparatives is incorrect, and the disclosures continue in later periods until the discontinuance is completed.

  1. AComparative information for prior periods need not be restated for the discontinuing operation, as the initial event occurred in the current year
  2. BThe disclosures are made only in the notes, and the face of the statement of profit and loss is never used
  3. CDisclosures for the discontinuing operation are presented separately in the notes or the face, and prior period comparatives for the disclosures are restated to segregate continuing and discontinuing operationsCorrect
  4. DDisclosures are required only until the end of the year in which the initial event occurred and never in later years

Explanation

AS 24 requires the disclosures for the discontinuing operation to be presented separately, and comparative information for prior periods that relate to the discontinuing operation is restated and segregated from continuing operations. Disclosures continue in financial statements until the completion of the discontinuance, so the last option is wrong. AS 24 permits presentation in the notes or on the face of the statement.

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