“Non-current assets held for sale” deals with the situation where an entity decides that a non-current asset (which by definition is held for continuing use in the business) is no longer to be held for continuing use. Rather it is to be sold. “Discontinued operations” arise when an entity decides to discontinue a part of its business.
1 The objective of this IFRS is to specify the accounting for assets held for sale, and the presentation and disclosure of discontinued operations. In particular, the IFRS requires:
7 For this to be the case, the asset …Read More
15A An entity shall measure a …Read More
30 An entity shall present and disclose information that enables users of the financial statements to evaluate the financial effects of discontinued operations and disposals of non-current assets (or disposal groups).
Presenting discontinued operationsRead More
Appendix B Application supplement
This appendix is an integral part of the IFRS.
B1 As noted in paragraph 9, an extension of the period required to complete a sale does not preclude an asset (or disposal group) from being classified as held for sale if the delay is caused by …Read More
Guidance on implementing IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
This guidance accompanies, but is not part of, IFRS 5.
Availability for immediate sale (paragraph 7)Read More
Completion of sale expected within one year (paragraph 8)
To qualify for classification as held for sale, the sale of a non-current asset (or disposal group) must be highly probable (paragraph 7), and transfer of the asset (or disposal group) must be expected to qualify for recognition as a completed sale within one year (paragraph 8). …Read More
Exceptions to the criterion in paragraph 8
An exception to the one-year requirement in paragraph 8 applies in limited situations in which the period required to complete the sale of a non-current asset (or disposal group) will be (or has been) extended by events or circumstances beyond an entity’s control and specified conditions are met (paragraphs 9 and B1). …Read More
Determining whether an asset has been abandoned
Paragraphs 13 and 14 of the IFRS specify requirements for when assets are to be treated as abandoned. Example 8 illustrates when an asset has not been abandoned.
An entity ceases to use a manufacturing plant because demand for its product has declined. However, the plant is maintained in workable condition …Read More
Presenting a discontinued operation that has been abandoned
Paragraph 13 of the IFRS prohibits assets that will be abandoned from being classified as held for sale. However, if the assets to be abandoned are a major line of business or geographical area of operations, they are reported in discontinued operations at the date at which they are abandoned. Example 9 …Read More