During the year to 30 September 20X6 price plc carried out a major reorganisation of its activities as follows: (a) The only remaining manufacturing division of the company was closed down on 1 June 20X6. As a result of the closure Price's only activity will be in retail. (b) Owing to fierce the competition, on 31 August 20X6 it was decided to sell the only division that operated in Europe. The company was confident of a sale within the year. The sale actually took place on 20 January 20X7. (c) The activities carried on by the research division were terminated during the period. This division was one of a number of smaller ones which operated from the same location as the main headquarters of Price. All these division use the same central accounting system and operating costs are allocated between them for the purpose of the management accouts. The accounts for the year ended 30 September 20X6 were approved on 5 January 20X7. Discuss how these events should be accounted for in the finnacial statements of Price plc for the year ended 30 September 20X6 in relation to IFRS % Non-current Assets Held for Sale and Discontinued Operations.
During the year to 30 September 20X6 price plc carried out a major reorganisation of its activities as follows:
(a) The only remaining manufacturing division of the company was closed down on 1 June 20X6. As a result of the closure Price's only activity will be in retail.
(b) Owing to fierce the competition, on 31 August 20X6 it was decided to sell the only division that operated in Europe. The company was confident of a sale within the year. The sale actually took place on 20 January 20X7.
(c) The activities carried on by the research division were terminated during the period. This division was one of a number of smaller ones which operated from the same location as the main headquarters of Price. All these division use the same central accounting system and operating costs are allocated between them for the purpose of the management accouts.
The accounts for the year ended 30 September 20X6 were approved on 5 January 20X7.
Discuss how these events should be accounted for in the finnacial statements of Price plc for the year ended 30 September 20X6 in relation to IFRS % Non-current Assets Held for Sale and Discontinued Operations.
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