IFRS Uses the Idea of a Disposal Group, a Group

question 116

Multiple Choice

IFRS uses the idea of a disposal group, a group of assets and directly associated liabilities that a firm will dispose of as a group in a single transaction.The disposal group notion of IFRS envisions a larger unit than the component notion of U.S.GAAP.In the year that a firm decides to sell or otherwise dispose of a unit that qualifies as a(n) _____ it aggregates the assets and liabilities of that unit on the balance sheet into four groups: current assets, noncurrent assets, current liabilities, and noncurrent liabilities.

• A)continuing operation
• B)discontinued operation
• C)extraordinary gain or loss
• D)impaired operation
• E)paid-in-capital