CFAS_ PFRS 5_ Non-Current Assets Held for Sale and Discontinued Operations Flashcards
Disposal Group
What do we call a group of asset sold as one?
Current Assets
Assets classified as noncurrent in accordance with PAS 1 are classified as _______________ only if they meet the criteria to be classified as held for sale under PFRS 5
Non-current Asset
is “an asset that odes not meet the definition of a current asset”
PFRS 5
prescribes the accounting for assets held for sale, including disposal groups, and the presentation and disclosure of discontinued operations
recovered principally through a sale transaction rather than through continuing use
A noncurrent asset is classified as held for sale or held for distribution to owners if its carrying amount will be?
Current Asset
A noncurrent asset or a disposal group classified as held for sale are presented as _____________ in the statement of the financial position
The NCA or disposal group is available for immediate sale in its present condition; The sale is highly probable
A NCA is classified as HFS if the both of the following conditions are met which are?
commercial substance
Sale includes exchanges (of noncurrent assets for other noncurrent assets) that have
it is reclassified back to its previous classification
IF an asset is not sold within 1 year from the date of its classification as held for sale, what happens?
The delay is caused by events beyond entity’s control; and there is sufficient evidence that the entity remains committed on selling the asset
An asset or disposal group can continue to be classified as held for sale if the following conditions are met
assets held for distribution to owners
Noncurrent assets declared as property dividends are classified as _______________________________________ when they are available for immediate distribution in their present condition and the distribution is highly probable.
False (because its carrying amount will be recovered through continuing use rather than principally through sale)
(True or False) If a NCA is abandoned it is classified as held for sale
Lower of carrying amount and fair value less cost to sell
Held for sale assets are initially and subsequently measured at the?
discounted
Costs to sell are _____________ to their present value if the sale is expected to occur beyond one year
They are currently current assets
Geld for sale assets are not depreciated or amortized while they are classified as held for sale because?
carrying amount and recoverable amount
An asset that ceases to be classified as held for sale is measured that the lower of the assets?
Discontinued Operations
is a component of an entity that either has been disposed of or is classified as held for sale, and represents a major line of business or geographical area of operations; is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or is a subsidiary acquired exclusively with a view to resale
A Component of an entity
_____________________ comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity
single amount
the results of discontinued operations are presented in the statement of profit or loss and other comprehensive income as a ________________?
Assets and Liabilities
The ___________________ of a disposal group are presented separately. Offsetting is prohibited
