IFRS 5 NON-CURRENT ASSETS HELD FOR SALE: Notes and Summary

IFRS 5: Non-Current Assets Held for
Sale

Classification
(:6-:8,:9-:13)


• Measurement of a non-current asset
(:15-:19)
Measurement
• Recognition of impairment losses
and reversals (:20-:22, :24-:25)
• Changes to a plan of sale/distribute
Presentation
and disclosure



• Presentation (:38, :40)
• Disclosure (:41-:42)


1. Classification
*make decision to sell an asset
• Available for immediate sale (in present condition), and
• Sale highly probable (actually, more likely than probable) i.e.
– Management committed to sale, and
– Active programme initiated, and
– Marketed at roughly FV (selling price), and
– Sale expected to be completed in 12 months from date classified as NCAHFS,
and
• Exception? :9
• Delay due to events beyond entity’s control; still committed to plan to
sell (See Appendix B)
• Appendix B(a): Others imposed conditions on the sale
Ä Actions to respond cannot be initiated until firm
purchase commit
Ä Highly probable that buyer will be found in 1 year
– Unlikely that the plan (to sell) will change significantly/be withdrawn.