NON CURRENT ASSET HELD FOR SALE
expected to be a “completed sale”
o The carrying amount shall be recovered
principally through a sale transaction rather
than through continuing use (imbes na
gagamitin, ibinenta siya)
 ABANDONED NON CURRENT ASSET
 Carrying amount shall be recovered
principally through continuing use
rather than a sale (hindi mo na
ginagamit, but maybe some time in
the future p’wede mo ulit siyang
magamit)
 DISPOSAL GROUP
 Group of assets to be disposed, by
sale or otherwise, together as a
group in a single transaction, and
liabilities directly associated with
those assets that will be transferred
in the transaction
 [scenario]
Para makapagpatayo ka ng
building umutang ka bangko, so
nagkaroon ka na ng loans
payable. Dahil mayroon ka ng
loans payable, it is associated
with your non-current asset. And
according to disposal group,
kapag binenta mo na yung
building dapat kasama yung mga
associated liabilities, so it will
also be transferred
MEASUREMENT:
CONDITIONS FOR AN ASSET TO BE
CLASSFIED HFS
a) The asset or disposal group is available for
immediate sale in the present condition
subject only to terms that are usual and
customary
b) Sale must be highly probable (dapat sure or
mataas yung chance na mabenta yung
asset)
o HIGHLY PROBABLE
a. management must be committed to
plan to sell the asset or disposal
group
b. an active program to locate a buyer
and complete the plan must be
initiated (we should also search for a
buyer)
c.
within 1 year from the date of
classification as HFS (it has a
similarity with inventories, since
inventories can be sold within 1 year
and presented in the FS as a current
asset)
 What if not sold within a year?
 Still HFS if caused by events or
circumstances beyond the entity’s
control, and;
 [scenario]
Nagbebenta ka ng building, kaso
nagka-pandemic, bawal lumabas
or may enhanced community
quarantine, so you weren’t able
to sell the building within 1 yr,
nabenta mo siya nung medyo
ease na ang restrictions, if that is
the case, according to the
standard the building is still held
for sale.
 There is sufficient evidence that they
entity remains committed to plan to
sell the component
 Asset or disposal group must be
actively marketed for sale at a sale
price that is reasonable
 Actions required to complete the
plan indicates that is unlikely that the
plan will be significantly changed or
withdrawn
 Lower:
 Carrying amount (magkano
nakarecord sa libro natin)
 FV less cost of disposal (magkano
natin mabebenta)
 No depreciation is recorded (hindi na
natin ginagamit yung asset, ibebenta
natin. Therefore, depreciation should be
0)
 CA vs. FV – cost of disposal
 < - no adjustment is required (you
will record it at carrying amount)
 > - impairment loss
 Reversal of impairment
 Increase in FV less cost of disposal:
You can recognize a gain but not in
 excess of impairment loss previously
recognized (hindi p’wedeng sumobra
sa nirecord mong impairment loss.
Hanggang doon lang siya sa
impairment loss)
RECLASSIFICATION:
o Change in circumstance leading NCA not
HFS anymore
- Reclassify the HFS to PPE (gagamitin
mo na siya, and kapag gagamitin na
PPE na siya)
MEASUREMENT:
 Lower:
 CA as if not classified as HFS
 Recoverable amount at the date of
decision not to sell anymore
(magkano yung makukuha natin sa
ating asset)
ipagpapatuloy, p’wede nang ibenta. But
there should be a plan to dispose or to
sell)
c) Is a subsidiary acquired exclusive with a
view to resale (bumili ka ng isang
building para ibenta)
RECOGNITION:
 Actual disposal, or;
 The criteria for held for sale has been
met
PRESENTATION:
 Income Statement
 Single line item after the income
from continuing operations (nasa
statement of comprehensive
income)

PRESENTATION:

 Current Asset
 Disposal Group:
 Assets -> Current Assets
 Liabilities -> Current Liabilities
 Do not offset  Statement of Financial Position:
 Assets -> Current Assets
 Liabilities -> Current Liabilities
DISCONTINUED OPERATIONS
o Component of an entity that either has been
disposed of or is classified as held for sale,
and;
a) Represents a separate major line of
business or geographical area of
operations (ito yung branches)
 [example]
nagsara ang isang branch ng
sm, NCAHFS ba siya? No,
because that is a major line of
business, a major geographical
area of operation. Therefore, it
should be classified as
discontinued operations
b) Is a part of a single coordinated plan to
dispose of a separate major line of
business or geographical area of
operation. (in this case hindi na natin