7 - HFS Flashcards
1
Q
Initial measurement for HFS is?
A
Lower of carrying amount and FVLCTS
2
Q
If the FVLCTS is lower than the CA then?
A
Impairment loss
Dr SPL impairment loss
Dr NCA HFS
Cr PPE
3
Q
Classification criteria for HFS?
A
Available for sale in present condition
AND
Sale must be highly probable:
- management committed
- active plan to find buyer
- actively marketed at reasonable price
- sale expected within 12m
- significant changes to plan unlikely
4
Q
Criteria met after YE but before FS are authorised?
A
Disclosures required:
Description of asset
Facts and circumstance of the sale
Reportable segment info
5
Q
Subsequent measurement?
A
Remeasured at lower of CA and FVLCTS at each YE
Further impairment loss
OR
Reversal of previous impairment (can’t exceed previous imp cumulatively)
6
Q
HFS and depreciation?
A
HFS not depreciated
7
Q
On disposal HFS?
A
Gain or loss recognised in SPL
Proceeds - CA
