The closing down mob have a parade, wrap the Standard ( Sqn Flag ) up and drink what's left of the teabar funds, the reforming mob have a parade, unwrap the Standard and start to generate teabar funds to pay for their closing down party.
You do get the odd anomaly, I watched our squadron ( 20 Sqn ) disband and have the parade through the wire fence on QRA, and although the Squadron had gone, the aircraft and several of us were still on task and we finished some days after the rest of the Squadron had disbanded.