Continuing operations

From ACT Wiki
Jump to navigationJump to search

Financial reporting - comparability.

To enable meaningful comparisons between different financial reporting periods, reporting entities sometimes split out their total results, assets and liabilities into:

  • Continuing operations; and
  • Discontinued operations, for example, from divisions that have been disposed of.

Amounts in future periods can then be compared against the continuing operations component of the earlier period, as well as with the total aggregated amounts for the earlier period.

This may provide additional useful insights.

Related financial reporting standards include IFRS 5.

See also