IFRS 5 Non-current assets held for sale

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