IFRS 5 Non-current assets held for sale
Presenting non-current assets or disposal groups classified as held for sale
Paragraph 38 of the IFRS requires an entity to present a non-current asset classified as held for sale and the assets of a disposal group classified as held for sale separately from other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are also presented separately from other liabilities in the balance sheet. Those assets and liabilities are not offset and presented as a single amount. Example 12 illustrates these requirements.
Example 12
At the end of 20X5, an entity decides to dispose of part of its assets (and directly associated liabilities). The disposal, which meets the criteria in paragraphs 7 and 8 to be classified as held for sale, takes the form of two disposal groups, as follows:
|
Carrying amount after classification as held for sale |
||
|
Disposal group I: |
Disposal group II: |
|
|
CU |
CU |
|
| Property, plant and equipment |
4,900 |
1,700 |
| Investments in equity instruments |
1,400^* |
– |
| Liabilities |
-2,400 |
-900 |
| Net carrying amount of disposal group |
3,900 |
800 |
* An amount of CU400 relating to these assets has been recognised in other comprehensive income and accumulated in equity.
The presentation in the entity’s balance sheet of the disposal groups classified as held for sale can be shown as follows:
|
20X5 |
20X4 |
|
|
ASSETS |
||
|
Non-current assets |
||
|
AAA |
X |
X |
|
BBB |
X |
X |
|
CCC |
X |
X |
|
X |
X |
|
|
Current assets |
|
DDD |
X |
X |
|
EEE |
X |
X |
|
X |
X |
|
Non-current assets classified as held for sale |
8,000 |
– |
|
X |
X |
|
Total assets |
X |
X |
|
EQUITY AND LIABILITIES |
||
|
Equity attributable to owners of the parent |
|
FFF |
X |
X |
|
GGG |
X |
X |
|
Amounts recognised in other comprehensive income and accumulated in equity relating to non-current assets held for sale |
400 |
– |
|
X |
X |
|
Non-controlling interests |
X |
X |
|
Total equity |
X |
X |
|
Non-current liabilities |
||
|
HHH |
X |
X |
|
III |
X |
X |
|
JJJ |
X |
X |
|
X |
X |
|
|
Current liabilities |
||
|
KKK |
X |
X |
|
LLL |
X |
X |
|
MMM |
X |
X |
|
X |
X |
|
|
Liabilities directly associated with non-current assets classified as held for sale |
3,300 |
– |
|
X |
X |
|
|
Total liabilities |
X |
X |
|
Total equity and liabilities |
X |
X |
The presentation requirements for assets (or disposal groups) classified as held for sale at the end of the reporting period do not apply retrospectively. The comparative balance sheet for any previous periods are therefore not re-presented.
IFRS 5 Non-current assets held for sale