IFRS_5_Flashcards_Final
(35 cards)
What is a non-current asset held for sale?
An asset expected to be sold, not used, within 12 months.
When can an asset be classified as held for sale?
When sale is highly likely, and it is ready to sell.
What conditions must be met to classify an asset as held for sale?
Immediate sale, management commitment, plan exists, and buyer is being found.
How should an asset held for sale be measured?
At the lower of book value and fair value minus selling costs.
What happens to depreciation when an asset is held for sale?
Depreciation stops.
Can an asset still be used while it is held for sale?
Yes, but it must be available for quick sale.
How long can an asset stay held for sale?
Up to 12 months unless there is a valid delay.
What happens if the sale does not happen in time?
Reclassify the asset and start depreciating again.
What if conditions change and the asset will not be sold?
It must be removed from held for sale.
Where is the asset shown in the statement of financial position?
Separately from other assets.
What is a disposal group?
A group of assets and liabilities to be sold together.
How is a disposal group measured?
Same as a single asset – lower of book value and fair value minus selling costs.
What is a discontinued operation?
A major part of the business that is sold or stopped.
When is a part of the business a discontinued operation?
When it is clearly separate and already sold or classified as held for sale.
Where is a discontinued operation shown?
Separately in the income statement.
What is included in the profit or loss of a discontinued operation?
Results, gain or loss on sale, and related tax.
What must be disclosed for discontinued operations?
Description, amount of results, and cash flows.
Are comparative figures restated for discontinued operations?
Yes, for better comparison.
Can liabilities be classified as held for sale?
Yes, if directly linked to the asset or disposal group.
What happens to impairment for assets held for sale?
Impairment is tested before classification.
Can impairment loss be reversed?
Yes, if the fair value increases later.
Are held-for-sale assets included in current assets?
Yes.
Is held-for-sale classification available for all assets?
No, only for assets that can be sold quickly.
Can investment property be held for sale?
Yes, under IFRS 5.
