Held for sale non-current assets

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presented separately in SOFP. 'Held for sale' means that NCA/disposal group's CVt
recovered through sale rather than continuing use.
Criteria must be met:
(a) asset must be available for immediate sale in its present condition.
(b) sale must be highly probable.
For sale to be highly probable following must apply.
(a) Management must be committed to sell
(b) must be active plan to locate buyer.
(c) asset must be marketed at reasonable price in relation to its current fair
value.
(d) sale should be expected to take place within one year from date of
classification.
(e) It is unlikely that significant changes to plan will be made or plan withdrawn.

A NCA HFS measured @ lower of -CV and FV less costs to sell. An impairment loss
should be recognised where FV less costs to sell is lower than CV.
-should not be depreciated even if they are still being used.
-audit procedures will therefore be relevant:
1-Confirm asset meets definition of an asset HFS:
Discuss with management availability of asset for sale
review board minutes confirming been discussed and approved by board
Evaluate steps being taken to sell asset
Determine when sale is expected to take place by assessing progress to date
Determine basis on which sale price has been set
Discuss with management any significant changes to plans
2-Confirm asset valued in accordance with IFRS 5 and assess how fair value has been
determined.
3-review depreciation schedule confirming HFS not depreciated after
reclassification.
4-Confirm separate disclosure in accordance with IFRS 5.

Agriculture
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biological assets (living animals or plants (except for 'bearer plants') and
agricultural produce at point of harvest, along with process of
transformation as assets grow, degenerate, produce and procreate in course of their
lifecycle.
-measure biological assets @ FV less costs to sell.
Costs to sell must include fees, commissions and any other levies or taxes, and
must be complete.

Changes in carrying amount during period arise from either changes in fair
value(Ifrs 13,so judgementinvolved), or physical change of biological asset.
F/ss must disclose these amounts.

Interactions with other accounting standards

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Bearer plants(excluding livestock,milk,sheep farmed for wool PLUS their produce)are
living plants which 'bear' other agricultural produce and which are not
harvested themselves�therefore survive for more than one reporting period.
-Accounted for as IAS 16 Property. However,their agricultural produce (produce
growing on bearer plants) continues to be accounted for under IAS 41.

IAS 41 deals with assets till agricultural produce is harvested from asset. After
point of harvest,and processing has begun, IAS 2 applies.
Example a cow (biological asset) from which milk or meat is 'harvested'
(agricultural produce). Once produce has been harvested and processing
has begun, IAS 2 applies.

Some assets may be physically attached to land � eg trees � in which case IAS 41 on
biological assets,but IAS 16 or IAS 40 is applied to land.

Finally, IAS 41 contains its own criteria in relation to government grants and
assistance.Grants recognised when grant becomes receivable, whereas IAS 20 allows
recognition when 'reasonable assurance' it will be received.

If farm animals killed by infectious disease,would result in impairment of

assets,together with impairment reviews of other assets, but could also
result in entity being liable to others affected by any outbreak., provision too
then.