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Non-Current Assets Held For Sale and Discontinued Operations: IFRS 5
Non-Current Assets Held For Sale and Discontinued Operations: IFRS 5
standards
5
Current GAAP comparisons
IFRS financial statement disclosures
Looking ahead
End-of-chapter practice
Related Standards
IFRS
8 Operating segments
IAS 36 Impairment of assets
IAS 1 Presentation of financial statements
IFRS 5 - Overview
Objective
and scope
Classification as held for sale
Measurement
Presentation and disclosure
1.
2.
3.
4.
Stringent conditions:
Available for immediate sale in existing
condition
Sale must be highly probable
Likely that significant change will not be
made to the plan
Sale transaction will take place within one
year from classification as held for sale
IFRS 5 Measurement
On reclassification as held for sale
- Measure at lower of carrying amount and fair
value less costs to sell
- Write-down is an impairment loss
- Impairment loss is recognized in profit or loss
- No depreciation is taken while classified as
held for sale
IFRS 5 Measurement
Remeasure at each balance sheet date
- Increase in fair value less costs to sell is
recognized as a gain in profit or loss
- Increase limited to cumulative impairment
losses previously recognized
IFRS 5 Measurement
Changes to a plan of sale
Item is reclassified
Remeasured to lower of:
(a) Carrying amount before classified as held for
sale less any depreciation that would have
been taken if it had not been held for sale, and
(b) Its recoverable amount (i.e., higher of fair value
less costs to sell and value in use)
- Difference is recognized in profit or loss from
continuing operations
IFRS 5 Measurement
IFRS 5 Presentation
and Disclosure
Objective