Final answer:
Sunland Ltd. must report the disposal of its Industrial Design Division as a discontinued operation if it meets the criteria outlined in accounting standards for such a classification. If the division is a major separate line of business or geographical area, or part of a single coordinated disposal plan, the statement is true.
Step-by-step explanation:
Whether Sunland Ltd. is required to report the disposal of its Industrial Design Division as a discontinued operation in its financial statements depends on specific criteria outlined in accounting standards. Typically, a discontinued operation is a component of an entity that either has been disposed of or is classified as held for sale, and (a) represents a separate major line of business or geographical area of operations, (b) is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations, or (c) is a subsidiary acquired exclusively with a view to resale. If Sunland Ltd.'s Industrial Design Division meets these criteria, then reporting it as a discontinued operation would be considered true. Otherwise, the statement would be false.