Final answer:
To classify a component as a discontinued operation under ASPE, it must be disposed of or classified as held for sale, represent a separate major line of business or geographical area, and there must be no significant continuing involvement post-disposal.
Step-by-step explanation:
To treat a component as a discontinued operation under Accounting Standards for Private Enterprises (ASPE), certain conditions must be met. The primary conditions are that the component of an enterprise must have been either disposed of or be classified as held for sale, and that the operation represents a separate major line of business or geographical area of operations. Additionally, it should be part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations, or it should be a subsidiary acquired exclusively with a view to resale.
Furthermore, the discontinued operation should not have any significant continuing involvement in the operations of the component after the disposal transaction. Ensuring these conditions are met allows the financial statements to represent the financial position and results of operations accurately with respect to the normal, ongoing business activities separate from those that are being discontinued.