About
IFRS 5 requires:
- a non-current asset or disposal group to be classified as held for sale if its carrying amount will be recovered principally through a sale transaction instead of through continuing use;
- assets held for sale to be measured at the lower of the carrying amount and fair value less costs to sell;
- depreciation of an asset to cease when it is held for sale;
- separate presentation in the statement of financial position of an asset classified as held for sale and of the assets and liabilities included within a disposal group classified as held for sale; and
- separate presentation in the statement of comprehensive income of the results of discontinued operations.
What you should know
- Know and apply the definitions related to non-current assets held for sale and discontinued operations.
- Determine whether a non-current asset or disposal group meets the criteria to be classified as held for sale.
- Measure assets held for sale at the lower of carrying amount and fair value less costs to sell.
- Account for impairment losses and changes in the plan to sell.
- Distinguish between continuing operations and discontinued operations.
- Present and disclose assets held for sale and discontinued operations in the financial statements.