- Review the required disclosures for a discontinued operation in IFRS 5 and ASC 205-20-50 and ASC 360-10-45. Identify which paragraphs are the most relevant in detailing the necessary disclosures for discontinued operations.
- Provide and record the journal entries required for TCH's remeasurement.
- Draft the required disclosures and revisions to the comparative consolidated financial statements assuming DHI reports using US GAAP.
- Draft the required disclosures and revisions to the comparative consolidated financial statements assuming DHI reports using IFRS.
- Considering the above analyses in the previous requirements, explain if US GAAP or IFRS provides better information about discontinued operations for users of the financial statements.
|
(All $ amounts in millions)
|
|
|
Consolidated DHI
|
TCH
|
|
Statement of financial position
|
2014
|
2013
|
2014
|
2013
|
|
Cash
|
$ 20
|
$ 30
|
$ (30)
|
$ 10
|
|
Inventory
|
360
|
380
|
80
|
50
|
|
PP&E
|
450
|
460
|
200
|
210
|
|
Liabilities
|
100
|
90
|
20
|
20
|
|
Equity
|
730
|
780
|
230
|
250
|
|
Income statement
|
|
|
|
|
|
Revenue
|
1,700
|
1,750
|
500
|
600
|
|
Expenses
|
(1,400)
|
(1,350)
|
(540)
|
(580)
|
|
Pretax income (loss)
|
300
|
400
|
(40)
|
20
|
|
Income tax expense (benefit)
|
(150)
|
(200)
|
20
|
(10)
|
|
Net income (loss)
|
$ 150
|
$ 200
|
$ (20)
|
$ 10
|
|
Cash flows
|
|
|
|
|
|
Operating activities
|
$ 150
|
$ 200
|
$ (20)
|
$ 10
|
|
Investing activities
|
(100)
|
(120)
|
-
|
(10)
|
|
Financing activities
|
(60)
|
(100)
|
(20)
|
(10)
|
|
Beginning cash
|
30
|
50
|
10
|
20
|
|
Ending cash
|
$ 20
|
$ 30
|
$ (30)
|
$ 10
|