Week 7 - NCA + Discontinued Operations

Question 1

What does IFRS 5 require?

Answer 1

Assets-held-for-sale to be shown separately in SFP.

Also, sets criteria for recognising discontinued operations.

Question 2

Definition of NCA held-for-sale

Answer 2

When the carrying amount of the non-current asset will be recovered principally through a sale transaction rather than continuing use.

Question 3

Criteria for NCA held-for-sale

Answer 3

Must be available for IMMEDIATE sale in present condition

Sale must be highly probable.

Probable economic benefits
Intention to complete project
Resources exist to complete project
Ability to use or sell asset
Technical feasibility of project
Eexpenditure realiably measured

Question 4

How are NCA held-for-sale measured at

Answer 4

Lower of:

• Carrying Amount (NBV)
• Fair Value (NRV)

Question 5

How are NCA held-for-sale shown on SFP

Answer 5

Separately underneath current assets.

Question 6

Are NCA held-for-sale depreciated?

Answer 6

NO