AS 24 Guides Reporting for Discontinuing Operations, Enhancing Financial Clarity and Cash Flow Projections in Financial Statements

The Accounting Standard (AS) 24 on Discontinuing Operations outlines principles for reporting information on discontinuing operations to enhance users' ability to project an enterprise's cash flows and financial position. It applies to all discontinuing operations, defining them as components disposed of under a single plan, representing a major line of business or geographical area, and distinguishable for financial reporting. The standard requires initial disclosure when a binding sale agreement is made or a formal discontinuance plan is announced. It mandates specific presentation and disclosures in financial statements, including assets, liabilities, revenue, expenses, and cash flows related to discontinuing operations.

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